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25th  Congress,  j^ep.    No.    313.  Ho.  op  Reps. 

3 (i  Sess ion.  


DEFALCATIONS. 


REPORTS  OF  MAJORITY  AND  MINORITY. 


Wednesday,  February  27,  1839. 

Mr.  Har'.an,  from  the  Select  Committee  appointed  on  the  17th  of  January  last  to  inquire  and 
report  as  to  defaleations  of  public  officers,  made  a  report ;  when 

Mr.  OwExs,  of  the  same  committee,  on  behalf  of  the  minority,  by  leave,  submitted  a  report 
contaming  the  views  of  the  minority  upon  the  subject-matters  of  inquiry  committed  to  the  com- 
mittee. 

It  was  then 

Ordered,  That  the  said  reports  do  lie  on  the  table-,  and  tliat  5,000  copies  thereof,  with  the 
journal  of  the  committee,  and  20,000  copies  thereof,  without  the  journal,  be  printed  for  the  use 
of  the  House. 


REPORT 

OF 

THE    COMMITTEE   OF    INVESTIGATION, 

Chosen  by  ballit  by  the  House  of  Rppreseni.it  ivcs  January  17  and  19, 1839, 

ox  THE  SUllJKCT  OF 


THE  DEFALCATIONS 


SAMUEL    SWARTWOUT    AND    OTHERS, 


THE  CORRECTNESS  OF  THE  RETURNS  OF  COLLECTORS  AND  RECEIVERS 
OF  THE  PUBLIC  MONEY; 


THE    REPORT 


MINORITY  OF  THE  COMMITTEE. 


FUINTED    BY    THOMAS    ALLEN. 
183<). 


Rep.  No.  313. 


TABLE    OF    CONTENTS. 


Page. 
Copy  of  resolutions  of  the  House  of  Representatives  ctfiating  the  Committee  of  In- 
vestigation       ------._-  3 

Prefatory  remarks    -  -  -  --  -  -  -  -  4 

Part  I.   The  defalcations  of  Samuel  Swartwout       _  _  .  .  _  8 

1st.  Their  extent  _---_...  8 

2d.    Their  duration       --------10 

3d.    Their  causes         ---.._.  .27 

The  causes  are  divided  as  follows  : 

Cmise  1.  The  irresponsibility  of  Mr.   Swartwout  in  pecuniary  character 

at  the  time  of  kis  appointment  to  office  -  -  -  -  28 

Cause  2.   Culpable  disregard  of  law  and  neglect  of  official  duty  by  the 
late  naval  officer  at  New  York  .  _  _  _  _  33 

Cause  3.   Culpable  disregard  of  law  and  neglect  of  official  duty  by  the  First 

Auditor  of  the  Treasury  -  -  -  -  -  -  41 

Cause  4.   Culpable  disregard  of  law  and  neglect  of  duty  by  the  late  and 
present  Comptrollers  of  the  Treasury  -----  52 

Cause  5.   The  discontinuance  of  the  use  of  banks  as  depositories  of  the 

public  moneys,  and  jx-rmitting  the  same  to  accumulate  in  the  hands  of 

Mr.  Swartwout  --.___-  71 

Cause  6.   The  negligence  and  failure  of  the  Secretary  of  the  Treasury  to 

discharge  his  duty,  as  the  head  of  the  Treasury  Department,  charged 


)y  law  with 

the  su 

K-rintendence  of  the 

collection  of  the  revenue 

73 

Part    II. 

The  defalcation 

5  of  William 

M.   Price     - 

- 

. 

99 

Paht  hi. 

The 

correctness 

of  the 

returns  which  have  been  made 

by  the  present  col- 

lector  and 

naval  officer  at  th( 

;  port  of  New  York 

- 

". 

106 

Paut  IV 

Defalcations  among  receivers 

of  the  public 

money 

. 

142 

Ist. 

Statement  of  balances  due  from  late  land  receivers 

. 

143 

2d. 

Correspondence  between 

the  Secretary  of  the 

i'reasury  and 

K.H.Sterling      - 

147 

3d. 

Do. 

do. 

do. 

do. 

J.  'J'.  Pollock      - 

154 

4th. 

Do. 

do. 

do. 

do. 

Wm.  Linn 

159 

5th. 

Do. 

do. 

do. 

do. 

W.  P.  Harris     - 

167 

6th. 

Do. 

do. 

do. 

do. 

G.  D.  Boyd 

184 

7th. 

Do. 

do. 

do. 

do. 

L.  Hawkins 

191 

8th. 

Do. 

do. 

do. 

do. 

U.  G.  Mitchell  - 

193 

9th. 

Do. 

do. 

do. 

do. 

P.  Childress 

196 

10th. 

Do. 

do. 

do. 

do. 

M.  J.  Allen 

199 

1 1th. 

Do. 

do. 

do. 

do. 

.John  Spencer 

219 

12th. 

Do. 

do. 

do. 

do. 

J.  H.  Owen 

229 

13th. 

Do. 

do. 

do. 

do. 

J.W.  Stephenson 

231 

14th. 

Do. 

do. 

do. 

do. 

8.  W.  Dick.son  - 

235 

15th. 

Do. 

do. 

' 

do. 

do. 

J.  L.  Daniel 

242 

16th. 

Do. 

do. 

do. 

do. 

S.  W.  Beall       - 

245 

Part  V. 

Facts  connectexl 

with  the  foregoing  defalcations,  and  deemed  material  to  de- 

velop 

theii 

true  character 

- 

- 

- 

- 

247 

Part  VI. 

Mr. 

Hopkin.s's  special 

concurrence  in  the  report  of  the 

committee 

261 

Report  of  the  minority  of  tlie  committee 

- 

- 

_ 

262. 

Rep.  No.  313. 


RESOLUTION  CREATING  THE  COMMITTEE. 
25th  Congress  '3d  Session. 

Congress  of  the  United  States. 

Li  the  House  of  Representatives, 

January  17,  1839. 

Resolved,  That  the  communication  from  the  President  of  ihe  United 
States,  of  the  Sthof  December,  183S,  relating  to  the  defalcation  of  the  late 
collector  of  the  port  of  New  York,  except  so  much  as  relates  to  the  modi- 
fication of  the  revenue  laws,  be  referred  to  a  select  committee  of  nine 
members,  to  be  appointed  by  the  House,  by  ballot,  whose  duty  it  shall  be 
to  inquire  into  the  causes  and  extent  of  the  late  defalcations  of  the  custom- 
house at  New  York  and  other  places,  the  length  of  time  they  have  ex- 
isted, the  correctness  of  the  returns  which  have  been  made  by  the  collect- 
ors, and  naval  and  other  officers,  and  the  deposite  banks,  respectively ; 
and  all  such  facts  connected  with  said  defalcations  as  may  be  deemed  ma- 
terial to  develop  their  true  character. 

Be  it  further  resolved,  That  said  committee  be  required  to  inquire  into, 
and  make  report  of,  any  defalcations  among  the  collectors,  receivers,  and 
disbursers  of  the  public  money,  which  may  now  exist;  who  are  the  de- 
faulters; the  amount  of  defalcations;  the  length  of  time  they  have  exist- 
ed, and  the  causes  which  led  to  them.  And  that  said  committee  have 
power  to  send  for  persons  and  papers. 

The  House  proceeded  to  appoint  said  committee  by  ballot;  and 
Mr.  Harlan,  of  Kentucky, 

"     Curtis,  of  New  York, 

"     Wise,  of  Virginia, 

"     Dawson,  of  Georgia, 

"     Smith,  of  Maine, 

*'     Hopkins,  of  Virginia, 

"     Owens,  of  Georgia, 

"     Foster,  of  New  York, 

"     Wagener,  of  Pennsylvania, 
were  elected. 


ADDITIONAL  RESOLUTIONS  CONCERNING  THE  COMMITTEE. 
25th  Congress  3 J  Session. 

Congress  of  the  United  States. 

In  the  House  of  Representatives, 

January  19,  1839. 
On  motion  of  Mr.  Wise, 
Resolved,  That  the  Select  Committee  of  nine,  elected  by  the  House  to 
investigate  the  late  defalcations  of  public  officers,  have  power  to  elect  a 
clerk ;  to  employ  a  printer  to  print  for  its  own  use  its  journal  and  other 
papers  required  to  be  copied  for  its  members ;  that  the  committee  have 
leave  to  proceed  to  New  York  or  other  places  for  the  purpose  of  prose- 
cuting its  inquiries;  and  that  the  members  thereof  be  excused  from  at- 
tendance upon  the  House  until  it  shall  have  made  its  report. 


Rep.  No.  313. 


REPORT  OF  THE  MAJORITY. 


PREFATORY    REMARKS. 

The  Select  Committee  chosen  by  the  House  of  Representatives  on  the 
17th  and  19th  lUtinjo  to  investigate  the  defalcations  of  Samuel  Swart- 
wout,  late  collector  of  customs  at  the  port  of  New  York,  and  of  other  of- 
ficers, have  devoted  to  the  faithful  discharge  of  the  duties  assigned  them 
the  limited  time  allowed  for  the  purpose  by  the  shortness  of  the  present 
session  of  Congress. 

It  was  most  obvious,  however,  that  tlie  whole  field  of  inquiry  present- 
ed, by  the  resolution  appointing  the  conmiittec  c  ould  not  be  properly  trav- 
ersed to  report  thereon,  either  satisfactorily  to  the  country  or  to  the  com- 
mittee, during  the  short  remainder  of  the  present  Congress.  This  im- 
pressed upon  the  committee,  at  once,  a  resolution,  which  has  been  riaidly 
adhered  to,  of  limiting  the  investigation  to  such  branches  of  the  subjects 
referred  to  them  as  had  most  deeply  excited  public  anxiety  and  alarm, 
and  to  undertake  only  so  much  of  these  as  might  be  thoroughly  exhaust- 
ed within  the  allotted  period  of  the  committee's  researches.  But,  the  im- 
portant results  which  have  been  attained,  notwithstanding  the  disadvan- 
tages adverted  to,  cannot  fail  to  inspire  the  country  with  a  confident  hope 
that  the  high  obligation  which  will  rest  upon  the  successors  of  tlie  present 
Congress  in  the  legislative  councils  of  the  nation  to  resume  and  complete 
the  great  work  of  investigation  and  reform  of  the  alarming  condition  and 
abuses  of  the  Executive  Departments  of  the  Government,  from  the  high- 
est to  the  lowest,  and  from  the  nearest  to  the  remotest  functionaries,  will 
secure  the  prompt  and  efficient  attention  which  its  magnitude  demands. 

Guided  solely  by  the  character  of  the  developments  which  the  investi- 
gation imposed  upon  them  by  the  House  has  elicited,  the  conuiiittee  can- 
not resist  the  conviction,  that  at  no  period  in  the  history  of  the  Federal 
Government  has  there  been  deeper  or  better  founded  cause  than  exists  at 
the  present  moment  for  every  patriot  heart  to  desire  a  prompt  consumma- 
tion of  that  signal  '■^  task  of  reform''^  which  public  seniimoit,  Tnuny 
years  since,  iyisci^ibed  on  the  list  of  Executive  duties  in  characters  too 
legible  to  be  overlooked,  vcqnirlng,  <•  particularly,  the  correction  of  those 
abuses  that  have  brought  the  patronage  of  the  Federal  Government  into 
conflict  v/ith  the  freedom  of  elections,  and  the  couyiteraction  of  those 
causes  ichich  have  disturbed  the  rightful  course  of  appointment,  and 
have  placed   or   continued   power    in    unfaithful    or   incompetent 

HANDS."* 

The  first  procedure  of  the  committee,  after  organizing  itself  for  busi- 
ness, was,  to  visit  the  city  of  New  York,  to  inspect  there,  in  person,  the 
original  records  and  papers  of  the  custom  house,  in  conjunction  with  the 
examination  of  such  witnesses  as  might  be  supposed  capable  of  shedding 
light  upon  the  inquiry  involved  by  the  defalcations  of  Mr.  Swartwout 
Thenceforward,  tliis  branch  of  the  investigation  was  conducted  pursuant 
to  the  resolution  of  the  House,  viz :  to  ascertain  "the  causes  and  extent' 

*  Inaugural  Address  of  President  Jackson,  March  4,  1829. 


Rep.  No.  313.  5 

of  those  defalcations;  "the  length  of  time  they  have  existed;"  "the  cor- 
rectness of  the  returns  which  have  been  made  by"  Mr.  Swartwout,  and 
by  the  naval  oflicer  at  New  York,  and  by  other  olficers  connected  with 
the  adjustment  of  liis  accounts. 

Concurrently  with  the  investigation  of  Mr.  Swartwoui's  defiilcations, 
those  of  WilHam  M.  Price,  late  district  attorney  in  New  York,  were  like- 
wise kept  in  view;  and  the  fullest  practicable  extent  of  inlornjation  re- 
specting them  has  been  obtained,  and  will  be  adverted  to  in  the  sequel  of 
this  report. 

"  Tlie  correctness  of  the  returns  which  have  been  made"  by  the  present 
collector  of  customs  and  the  naval  officer,  respectively,  at  the  port  of  New 
Y(jrk,  was  also  sought  to  be  examined  by  the  conunittee  while  in  that  city. 
Coiisidering  that  "  the  customs  collected  at  New  York  equal  nearly  two- 
thirds  of  the  whole  amount  in  all  the  United  States,"  as  stated  in  the 
special  report  of  the  Secretary  of  the  Treasury  on  Mr.  Swartwout's  de- 
falcations, (House  Doc.  13,  page  6,  of  the  present  session,)  the  committee 
did  not  suppose  that  they  sliould  faithfully  discharge  their  duty  to  the 
House,  or  pay  a  proper  deference  to  that  patriotic  distrust  which  pervades 
the  country  at  the  present  time  in  regard  to  the  affairs  of  the  custom-house 
at  New  York,  were  they  to  limit  their  inquiries  to  the  leturiis  of  the  late 
collector  and  naval  officer,  and  neglect  entirely  those  of  their  successors, 
which  must,  at  all  times,  be  to  the  country  of  equal  interest  with  the  for- 
mer, and,  at  the  present  time,  of  even  more  immediate  importance  to  the 
security  of  the  national  Treasury.  But,  in  the  execution  of  so  much  of 
this  part  of  their  inquiries  as  related  to  the  present  collector  at  New  York, 
they  were  compelled  to  encoimter  most  unexpected  obstacles,  interposed 
by  the  collector  himself,  and  setting  at  defiance  the  authority  delegated 
to  the  committee  by  the  House.  The  facts  connected  with  the  baffled 
endeavors  of  the  committee  to  obtain  mformation  for  the  House  and  coun- 
try from  this  officer  of  the  Executive  branch  of  the  Government,  who  is 
in  inmiediate  charge  of  and  control  over  public  moneys  that  "  cqxuil 
nearly  two  third fi  ( if  the  ivhole  anioiint''^  collected  from  customs  '■'■in  all 
the  United  S'ta/es,""  will  be  more  specially  detailed  in  a  subsequent  por- 
tion of  this  report. 

The  committee  will  remark  here,  that,  in  the  outset  of  the  investigation 
tliey  have  made,  they  supposed  it  both  })roper  and  safe  to  place  themselves 
somewhat  confidingly  under  the  guidance  of  the  several  .special  reports 
which  had  been  made  to  the  House  upon  the  subject  of  Mr.  Swartwout's 
defalcations,  by  the  Treasury  officers,  previous  to  the  a])pointment  of  the 
committee — combining,  m  this  view,  reports  from  the  Secretary  of  the 
Treasury,  the  First  Comptroller,  the  Solicitor,  and  First  Auditor  of  the 
Treasury,  as  exhibited  in  House  document  13.  It,  however,  very  soon 
became  evident  that  those  reports  were  not  to  be  implicitly  relied  on  as 
auxiliaries  in  finding  out  either  the  law  or  tiie  facts  of  the  case ;  and  that, 
on  the  contrary,  they  furnished  but  an  oblique  view  of  both  the  causes 
and  duration  of  Mr.  Swartwout's  defalcations,  as  also  of  the  law  and 
many  material  facts  which  develop  the  true  character  of  those  defalcations. 
Of  necessity,  therefore,  these  reports,  although  emanating  from  the  high- 
est orders  of  official  functionaries  employed  in  the  collection  and  disburse- 
ment of  the  public  revenues,  became  tlie  subjects  of  as  cautious  and  criti- 
cal examination  as  any  other  poruons  of  evidence  which  the  case  jiresented; 
and,  as  such,  it  will  be  obligatory  upon  the  committee  to  treat  them  in  this 
report. 


6  Rep.  No.  313. 

In  reviewing  the  details  of  their  labors,  so  that  the  progress  and  results 
of  them  may  be  presented  in  the  simplest  form,  the  committee  propose  to 
consider — 

Part  I.  The  defalcations  of  Mr.  Swartwout. 

Part  II.  The  defalcations  of  Mr.  Price. 

Part  III.  The  correctness  of  the  returns  which  have  been  made  by 
the  present  collector  and  naval  officer  at  the  port  of  New  York,  respect- 
ively. 

Part  IV.  Defalcations  among  receivers  of  the  public  money. 

Part  V.  Facts  connected  with  the  foregoing  detalcations,  and  deem- 
ed material  to  develop  their  true  character. 

Each  of  the  divisions  thus  proposed  will  properly  involve  the  law  ap- 
pertaining to  it,  as  the  appropriate  adjunct  of  its  facts.  And  as  the  lan- 
guage of  the  law  itself  will  in  each  instance  be  cited  in  detail,  that  its 
authority  and  injunction  may  be  correctly  understood  by  every  one,  so 
the  language  of  the  individual  testimony  relied  on  in  each  instance  will 
be  adduced,  that  its  import  and  force  may  be  left  neither  to  uncertain 
construction  nor  doubtful  inference.  The  increased  fidelity  of  their  report, 
in  the  estimation  of  the  committee,  will  be,  by  this  mode,  an  ample  offset 
to  its  consequent  enlargement. 

Before  proceeding  to  the  general  topics  of  this  report,  as  already  laid 
down,  it  may  be  proper  here  to  express  the  deep  sense  of  disappointment 
and  regret  of  the  committee,  in  not  being  able  to  comnnniicate  to  the 
House  one  document  that  was  called  for  at  an  early  day,  regarded  as 
having  an  important  and  interesting  influence  upon  the  judgment  which 
the  House  might  form  on  the  subject  of  defalcations  among  public  offi- 
cers, and  the  causes  which  have  led  to  their  multiplication.  It  will  be 
perceived  from  the  following  letter,  that  the  committee  availed  itself  of 
the  earliest  period  after  their  organization,  to  make  a  call  upon  the  Presi- 
dent to  furnish  a  list  of  the  defalcations  that  have  taken  place  among  col- 
lectors, receivers,  and  disbursers  of  public  money,  and  other  public  officers, 
since  the  4th  of  March,  1829,  showing  the  amount  of  each,  &c. 

More  than  four  weeks  have  now  elapsed  since  that  call  was  made  upon 
the  President, and  the  only  information  which  the  committee  have  obtained 
to  report  upon  to  the  House  is  embraced  in  the  following  letter,  the  distin- 
guishing feature  of  which  information  is,  that  still  more  time  than  even  the 
whole  remainder  of  the  session  will  be  requisite  to  answer  the  call.  From 
this  the  committee  are  compelled,  reluctantly,  to  infer,  either — 

1st.  That  the  accounts  and  records  of  the  several  Departments,  in  gen- 
eral, are  so  incomplete  and  defective  as  not  to  exhibit,  without  great  labor 
and  delay,  the  true  relations  of  collectors,  receivers,  and  disbursers  of  the 
public  money,  and  of  other  officers,  to  the  Government,  so  as  to  distin- 
guish debtors  from  defaulters,  and  creditors  from  both;  or, 

2dly.  That  the  number  of  the  defaulters  have  multiplied  so  rapidly  since 
1829,  under  the  system  of  accounta])ility  pursued  towards  collectors,  re- 
ceivers, and  disbursers  of  the  public  money,  and  other  officers,  as  to  pre- 
clude the  practicability  of  securing  an  account  current  of  their  defalca- 
tions upon  the  records  of  the  Departments,  with  all  the  clerical  force  at  the 
command  of  those  Departments  under  existing  laws  and  appropriations. 

If  either  inference  be  just,  (and  none  other  of  equal  weight  seems  to  be 
fairly  deducible  from  the  letter  of  the  Secretary  of  the  Treasury,)  it  mani- 
fests a  general  laxity  of  administration,  which  demands  the  earliest  appli- 


Kcji.  No.  313.  7 

cation  of  suitable  remedies  within  the  reach  of  Congress  and  of  the 
country. 

For  papers  Nos.  1  and  2,  referred  to  in  the  subjoined  letter,  reference 
is  respectfully  made  to  the  Journal  of  the  Committee. 

Treasury  Department,  February  18,  1839. 

Sir:  The  President, aon  the  23d  ultimo,  referred  to  this  Department  the 
following  resolution  passed  by  the  Investigating  Committee  : 

"  Resolved,  That  the  President  of  the  United  States  be  requested  to 
cause  this  committee  to  be  furnished  by  the  proper  Executive  Department 
with  a  table  showing  the  defalcations  which  have  occurred  among  the 
collectors,  receivers,  and  disbursers  of  public  money,  and  other  public 
officers,  since  the  4th  day  of  March,  1S29;  the  names  of  the  defaulters  j 
(he  amount  of  each  defalcation  ;  when  each  ca^e  occurred ;  the  length  of 
time  each  case  has  existed  ;  what  steps  have  been  taken  by  the  proper  de- 
partments or  officers  to  prosecute  the  defaulters  and  to  secure  the  United 
Stales,  in  each  case ;  and  what  defaulters  are  retained  in  the  same  offices 
in  which  they  became  defaulters,  or  have  been  appointed  to  other  offices." 

He  accompanied  it  by  a  request  that  all  the  information  desired  should 
be  procured  early  as  practicable,  and  submitted  by  me  to  the  committee. 
Accordingly,  on  the  same  day,  I  enclosed  copies  of  it  to  the  other  Depart- 
ments, and  also  to  the  proper  bureaus  in  the  Treasury  Department,  and 
desired  that  replies  might  be  furnished,  so  far  as  in  their  power,  and 
soon  as  in  their  power,  to  the  several  inquiries  made.  I  further  requested 
the  bureaus  connected  with  this  Department  to  employ  any  extra  assist- 
ance that  could  be  advantageously  applied  in  hastening  their  answers. 

I  would  now  inform  the  committee  that  great  progress  has  been  made 
in  respect  to  those  })arts  of  the  answers  comiected  with  the  Register's 
office,  and  all  which  could  be  made,  consistent  with  the  difficulty  and 
extent  of  the  labor,  in  the  Third  Auditor's  office.  But  it  is  feared  tliat, 
on  account  of  this  labor,  and  the  great  mass  of  previous  calls  by  com- 
mittees and  by  the  two  Houses  of  Congress,  which  are  also  to  be  answered, 
besides  transacting  the  current  business  in  the  different  bureaus,  the  whole 
details  and  the  tabular  statement  required  cannot  be  completed  during  the 
session.  Every  effort,  however,  which,  under  all  the  ciicumstances,  can 
be  made,  is  believed  to  be  exerted  to  meet  the  call  at  the  'earliest  day 
practicable. 

In  respect  to  the  last  branch  of  the  resolution,  asking  "what  defaulters 
are  retained  in  the  same  offices  in  -which  they  became  defaulters,  or  have 
been  appointed  to  other  offices,"  I  am  able  to  present  the  report  of  the 
Register,  from  his  office,  which  exhibits  such  names  as  are  on  his  books 
connected  with  the  State  and  Treasury  Departments.  It  is  annexed,  and 
contains  no  name  as  to  this,  and  but  one  as  to  the  State  Department.  That 
one  is  Commodore  D.  Porter;  and  by  the  correspondence  annexed,  it  will 
be  seen  that  he  does  not  consider  himself  a  defaulter,  though  he  stands 
charged  on  the  Register's  books  for  a  considerable  sum  on  account  of 
prize  money,  as  explained  in  the  papers  (Nos.  1  and  2.) 
Respectfully, 

LEVI  WOODBURY, 

Hon.  James  Harlan,  Secretary  of  the  Treasury. 

Chairman  of  Investigating  Committee. 


8  Rep.  No.  313. 

Referring  to  the  order  heretofore  proposed,  the  committee  will  now 
proceed  to  consider — 

PART  I. 

THE  DEFALCATIONS  OF  MR.  SWARTWOUT. 

This  branch  of  t]ie  report  divides  itself  with  reference  to — 

1st.    Their  extent. 
2d.    Their  duration. 
3d.    Their  causes. 

1.    THE    EXTENT    OF    MR.    S\V  AUTWOUt's    DEFALCATIONS. 

There  seems  to  be  no  cause  to  doubt  the  correctness  of  the  reports  of 
the  Treasury  officers,  as  to  the  extent  of  Mr.  Swartwout's  defulcations, 
viz  :  (S  1,225,705  69,)  one  niillinn  two  hundred  and  twenty -five  thousand 
seven  hundred  and  five  dollars  and  sixty -nine  cents.  At  any  rate,  tiitnigh 
the  aggregate  may  he  varied  by  further  adjustments,  this  is  no  more  nor  less 
than  the  indtibtedness  which  his  own  books  of  accounts  exhil)it  against 
him  ;  and,  what  is  of  no  less  importance  than  it  may  be  matter  of  surprise 
to  the  liouse  and  country  to  understand,  this  indebtedness  of  Mr.  Swart- 
wout  to  the  Government,  now  constituting  the  measure  of  his  defalcations, 
great  and  alarming  as  it  is,  is  no  more  nor  less  than  has  been  shown  and 
permitted  openly  to  grow  upon  the  face  of  his  official  quarterly  returns, 
made  with  periodical  regularity  to,  and  f  )r  the  investigation  of,  the  ac- 
counting officers  of  the  Trt^asnry  Department. 

On  the  accounts  of  xMr.  Swartwout  to  the  end  of  the  last  quarter  pre- 
ceding his  leaving  the  office  of  collector,  viz  :  up  to  December  31,  1S37, 
no  difference  whatever,  not  to  tiie  auiount  of  a  dollar,  has  arisen  between 
him  and  the  accounting  otRcers  of  the  Treasury.  In  regard  to  all  trans- 
actiuns  up  to  that  period,  all  his  charges  against  the  Government  have 
been  found  just  and  ftllowed  ;  and,  on  the  other  hand,  he  has  not  been 
found  chargeable  with  any  sum  whatever,  which  he  liad  omitted  to 
charge  against  himself 

There  being,  moreover,  no  dispute  or  omi-ssion  of  items  in  his  subse- 
quent and  last  quarter's  accounts,  up  to  March  28,  1838,  it  follows  that 
no  part  of  the  large  defalcation  already  stated  is  dijrived  by  either  trav- 
illing  out  of  his  own  books  of  official  accounts,  or  going  behind  the  actu- 
x\  balance  returned  by  himself  and  adjusted  by  the  Treasury  Department 
jp  to  Decem!)er,  1837. 

To  these  points,  tlie  testimony  of  Mr.  Fleminf;,  auditor  of  the  customs 
under  both  the  late  and  present  collector  at  New  York,  is  explicit,  eis 
bllows  : 

Examined  by  Mr.  Smith. 

Question  113.  What  is  the  aggregate  difference  between  Mr.  Swart- 

vout's  accounts,  down  to  the  end  of  the  fourth  quarter  of  1837,  as  re- 

irned  by  him  to  the   Tre  sury  D(!partmont,  and  the  amount  which  has 

ibsequently  been  allowed  to   him  on  tiiose  accounts  by  the  Treasury 

epartment  ? 


Rep.  No.  313.  9 

Answer.  I  think  the  Treasury  Department  have  allowed  all  the  charges*-v 
■made  by  Mr.  Swartwout  to  the  above  time,  and  that  no  difference  exists 
in  such  account  with  the  Treasury  Department. 

Question  114.  Has  the  Treasury  Department,  in  adjusting  Mr.  Swart- 
wout's  accounts  to  the  end  of  the  year  1S37,  charged  said  Swartwout 
with  any  sum  which  he  had  omitted  in  his  own  accounts,  rendered  up  to 
said  period  ? 

Answer.  They  have  not. 

Question  115.  Is  or  is  not  the  balance  now  claimed  to  be  due  by  the 
Treasury  Department  from  Swartwout,  according  to  Ho.  doc.  13,  and 
amounting  to  $1,225,705  69,  derived  wholly  from  the  balance  found  due 
on  his  accounts,  ending  December  31,  1S37,  as  settled  by  the  Treasury 
Department,  and  from  the  balance  of  his  succeeding  quarter  of  official 
operations  combined? 

Answer.  It  is.     (See  journal  of  the  committee.) 

John  Underivood,  ^.y^'.,  examining  clerk  in  the  office  of  the  First  Audi- 
tor of  the  Treasury,  and  the  confidential  clerk  delegated  by  the  Secretary 
of  the  Treasury  to  visit  New  York  and  inspect  the  custom-house  books, 
in  conjunction-  with  the  First  Comptroller  and  Solicitor  of  the  Treasury, 
in  November  last,  thus  bears  testimony  to  the  same  facts: 

Examined  by  Mr.  Curtis. 

Question  3-  Has  Mr.  Swartwout,  in  any  instance,  omitted  to  debit  him- 
self, and  credit  the  United  States  in  his  quarterly  accounts,  with  any 
amount  which  ought  to  have  been  thus  entered  by  him,  in  order  to  show 
the  true  balance  due  from  Mr.  Swartwout? 

Answer.  I  do  not  know  that  he  has. 

Questio'i4.  Upon  the  quarterly  accounts  rendered  by  Mr.  Swartwout, 
would  not  an  examination  of  them,  ancUa  striking  of  the  balance,  have 
shown  the  true  amount  due  from  Mr.  Swartwout  at  any  time? 

Answer.  It  would ;  for,  altiiough  the  particular  items  of  the  balance 
might,  from  circumstances,  differ  from  tlie  true  amount  of  each,  yet  the 
aggregate  balance  would  be  a  true  one.  And  this  will  always  hold  good, 
miless  a  part  of  the  duties  secured  by  and  chargeable  to  the  collector  had 
been  suppressed  by  him.  That  this  has  been  done  by  the  late  collector 
ni  New  York,  I  know  not. 

Question  5.  Have  you,  in  your  investigation  of  Mr.  Swartwout's  ac- 
counts, or  has  'the  Treasury  Department,  to  your  knowledge,  ascertained 
any,  and  what,  sum  which  ought  to  have  been,  but  which  was  not,  cred- 
ited to  the  United  States  by  Mr.  Swartwout,  and  charged  to  himself,, 
either  under  its  specific  and  appropriate  head,  or  under  the  head  of  cash 
and  bonds? 

Answer.  I  do  not  know  of  any  such  omission  in  his  quarterly  accounts, 
which  are  the  accounts  received  at  the  oiUce  of  the  First  Auditor. 

Question  7.  Did  or  did  not  the  charges  against  Mr.  Swartwout  at  the 
Treasury,  and  the  debit  side  of  his  own  account,  as  rend^^red  by  himself 
to  the  Treasury,  include  the  whole  amount  of  the  various  items  which 
make  up  his  defalcations,  as  set  forth  in  the  letter  of  Mr.  Gilpin  and  Mr. 
Barker,  addressed  to  the  Secretary  of  the  Treasury,  dated  15th  Novem- 
ber, 1838,  being  paper  15,dociunent  13,  H.  R.  3d  session  25th  Congress? 

Ansiver.  They  did. 
2 


10  Rep.  No.  313. 

Question  9.  Could  you  not,  from  Mr.  Swartwout's  accounts  rendered 
at  the  Treasury  Departmentj  ascertain  the  balance  due  from  JNIr.  Swart- 
wout,  without  a  resort  to  the  New  York  custom-house  books  ? 

^^iiswer.  If  the  accounts  for  the' first  quarter  of  1S3S — that  is,  the  clo- 
sing period  of  his  term — had  been  forwarded  to  the  Treasury,  the  true 
balance  due  from  him  could  have  been  ascertained  there.  These  ac- 
counts, however,  were  retained*  at  the  custom-house  until  they  were  sent 
on,  at  my  instance,  to  the  Treasury,  at  the  same  time  1  returned  to  Wash- 
ington, in  November,  1838. 

Question  13.  Did  you,  in  your  examination  into  the  origin  and  prog- 
ress of  Mr.  Swartwout's  defalcation,  find  any  new  items  which  ought  to 
have  been  debited  to  Swart wout  and  credited  to  the  United  States,  in  his 
quarterly  accounts,  and  which  had  not  been  so  entered? 

Ansiver.  I  did  not. 

From  the  preceding  testimony  the  committee  report,  as  established 
facts  : 

1st.  That  Mr.  Swartwout  is  a  defaulter  to  Government,  as  appears 
by  his  own  returns,  as  adjusted  from  time  to  time  at  the  Treasury  De- 
partment, in  the  sum  of  one  million  two  hundred  and  twenty-five  thou- 
sand seven  hundred  and  five  dollars  and  sixty-nine  cents. 

2dly,  'I'hat  this  amount  of  indebtedness  has  accumulated  upon  the  face 
of  the  quarterly  accounts  regularly  returned  by  him  for  adjustment  at  the 
Treasury  Department,  ^vithout  the  omission  of  any  items  of  either  debit 
or  credit  thereon,  until  it  became  an  absolute  defalcation. 

8.    THE   DURATION  OF  MR.  SWARTWOUt's  DKFALCATIONS. 

The  Treasury  officers  unite  in  representing  Mr.  Swartwout's  defalca- 
tions as  commencing  as  fai  back  as  in  1830.  The  Secretary  of  the  Treas- 
ury sums  up  his  own  examination  on  this  point,  and  also  the  statements 
of  the  First  Comptroller,  First  Auditor,  and  Solicitor  of  the  Treasury, 
thus:  "The  first  misuse  of  the  public  money  by  Mr.  Swartwout,  as  col- 
lector, appears  to  have  commenced  in  1S30.  A  series  of  defalcations,  in 
various  items  of  his  accounts,  seem  to  have  followed,  and  continued 
through  each  successive  year,  increasing  constantly  in  amount,  till  near 
the  close  of  his  official  term."  (See  rep.,  H.  doc.  13,  p.  4.)  This  would 
indicate  that  they  have  been  of  a  character  to  elude  the  vigilance  of  the 
accounting  officers  of  the  Treasury  for  a  series  of  years,  and  extending 
back  of  the  period  when  the  present  Secretary  of  the  Treasury,  the  pres- 
ent First  Comptroller,  the  ])resent  First  Auditor,  and  the  present  Solicitor 
of  the  Treasury,  respectively  came  into  office.  But  the  committee  do  not 
concur  in  this  view  of  the  matter  ;  nor  do  they  find  the  facts  to  warrant 
the  impress  of  any  such  early  date  upon  Mr.  Swartwout's  defalcations. 

So  far  as  Mr.  Swartwout's  interests  or  reputation  are  to  be  affected,  it 
matters  not  whether  any  portion  of  his  'defalcations  be  traced  back  to 
1830,  or  only  to  1837;  because  such  a  ({uestion,  respecting  dates,  is  not 
pretended  in  any  way  to  alter  the  aggregate  amount.  He  is  equally  a 
defaulter  in  tlie  sum  of  ^1,225,705  (39,  whether  he  is  to  bo  adjudged  a 
defaulter  from  theearher,  or  only  from  the  later  period  mentioned. 

Nevertheless,  the  instruction  of  the  House  to  the  committee,  in  the 
resolution  of  appointment,  has  required,  for  obviously  sound  reasons,  that 
t'^e  true  dates  or  precise  duration  of  Mr.  Swartwout's  defalcations  be 


Rep.  No.  313.  ^      11 

investigated;  and  lience  tlie  obligation  rests  upon  the  committee  lopres^nt 
the  facts  truly  as  they  have  been  found  ou  investigation. 

To  comprehend  the  process  by  which  the  Treasury  oflicers  assume  to 
carry  the  date  of  any  portion  of  Mr.  Swartwout's  defalcation  anterior  to 
1837,  it  is  necessary  to  ])ay  attention  to  the  system  of  book-keeping  that 
has  existed  in  the  custom-house  at  New  York  since  the  year  1799,  (See 
committee's  journal,  answer  6  of  Mr.  Shultz.) 

There  are  numerous  subordinate  accounts  kept  in  the  custom-house  at 
New  York,  by  way  of  making  distinct  exhibits  of  the  expenditures  made 
upon  distinct  objects.  The  effect  is  to  simplify  and  systematize  the  divis- 
ions of  labor  and  of  responsibility  into  which  the  great  aggregate  of  busi- 
ness at  the  custom-hou-e  naturally  and  necessarily  resolves  itself  Oa 
these  separate  accounts,  expenditures  made  by  the  collector  are  charged  to 
the  Government,  and  are  balanced  only  when  tiie  same  charges  are  trans- 
ferred to  the  quarterly  account  of  the  collector,  upon  which  he  settles  all 
his  financial  operations  for  the  Government  at  the  Treasury,  unless  he 
acts  under  some  special  appropriation  made  by  Congress,  and  then  he 
renders  a  separate  account.  But  as  no  charge  in  the  quarterly  account 
is  allowed  until  accompanied  by  a  voucher,  no  items  are  carried,  specifi- 
cally or  by  name,  from  the  subordinate  accounts  of  the  collector  thus  kept 
at  the  custom-house,  to  his  quarterly  account  returned  to  the  Treasury, 
until  the  requisite  vouchers  have  been  obtained,  and  he  is  prepared  to 
settle  such  items  finally.  When  any  items  are  thus  settled,  they  pass  out 
of  both  the  subordinate  and  the  quarterly  accounts,  in  order  to  indem- 
nify himself  in  his  quarter-yearly  settlements  at  the  Treasury  (required  by 
law)  for  the  amounts,  or  unsatisfied  balances  of  charges  against  the  Gov- 
ernment exhibited  by  these  numerous  subordinate  accounts;  and  until  he 
obtains  vouchers  to  settle  them  finally,  his  course  was,  and  must  of  need 
be,  to  add  them  together,  and  carry  them,  in  one  aggregate,  into  his  quar- 
terly account,  under  the  general  designation  oi  '■'■  amount  of  unsettled  ac- 
counts,''^ or  '■^amount  nf  unset  tied  and  suspense  accounts.^^  This, however, 
is  not  done  in  the  nature  of  a  charge,  but  as  a  part  of  a  recapitulatory  ex- 
planation that  is  contained  in  every  quarterly  return  of  accounts,  by  way  of 
indicating  wliat  amount  of  actual  ofi'sets  he  has  to  the  balance  stated 
against  him,  and  also  what  has  become  of  the  money  he  has  received  to 
constitute  such  balance.  If,  with  such  an  explanation,  the  accounting  of- 
ficer sees  fit  to  admit  the  account  to  settlement,  the  balance  is  passed  to  his 
account  for  the  next  quarter,  and  so  on. 

It  should  be  remembered  here,  that,  of  the  subordinate  accounts  thua 
kept  for  the  convenience  and  better  management  of  the  internal  affairs  of 
the  custom-house,  nothing  is  officially  known  to,  or  recognised  by,  the  ac- 
counting officers  of  tlie  Treasury  Department.  'I'hey  are  not  the  offspring 
of  any  Treasury  regulation,  but  are  the  arbitrary  institutions  of  the  col- 
lector. It  is  from  these  that  he  makes  up  his  quarterly  account  current; 
but  such  quarterly  account  is  the  one  returned  to  the  First  Auditor  of  tlie 
Treasury,  and  is  the  or)ly  one  of  final  adjustment  that  is  required,  or  re- 
cognised, by  the  accounting  officers  of  the  Treasury. 

With  this  explanation,  it  is  manifest  that  the  item  of  unsettled  or  su9- 
pense  accounts  of  the  collector,  in  his  quarterly  return,  only  represents 
sundry  classes  of  items  which  appertain  to  his  quarterly  account ;  they 
are  not  dependent  upon,  or  the  growth  of,  distinct  and  separate  fundi 
from  those  which  enter  generally  into  his  quarterly  account.     Hence,  tt 


12  Rep.  No.  313. 

separate  one  of  tliese  subordinate  accounts,  or  classes  of  items,  in  regard  to 
which  a  balance  may  be  standing  against  the  collector,  from  the  remain- 
der of  such  subordinate  accounts,  or  classes  of  items,  in  regard  to  which 
a  much  larger  balance  is  standing  in  his  favor,  and  to  pronounce  him  a 
defaulter  to  the  Government  on  the  former  balance,  because  the  other 
balance  in  his  favor  is  susceptible  of  being  absorbed  by  bringing  it  into  an 
olfset  to  the  whole  remainder  of  items  of  which  the  collector's  quarterly 
account  is  composed,  cannot  be  regarded  by  the  committee  as  a  fair  and 
just  representation  of  the  collector's  accounts,  or  of  his  defalcation.  But 
such  is  the  process  by  which  the  Treasury  officers,  Secretary,  Comp- 
troller, Auditor,  and  Solicitor,  have  made  Mr.  Swartwout  guilty  of  *'  a 
series  of  defalcations,"  continued  through  successive  years,  since  1830, 
and  prior  to  1S37. 

The  committee  conceive  that  there  is  a  propriety  in  either  taking  the 
whole. of  the  items  or  subdivisions  of  Mr.  Swartwout's  suspense  account 
Sogether,  and  striking  a  balance  tlierefrom  at  the  end  of  each  successive 
quarter  of  his  term,  or  in  taking  each  of  its  subdivisions  apart  from  all  the 
yest,  and  striking  the  balance  on  each  at  the  end  of  each  successive  quarter 
©f  his  term  ;  ofi'setting  thereafter  the  one  by  the  other,  to  resolve  them  into 
one  final  balance.  By  either  process,  it  will  appear  that  at  the  end  of  no 
quarter  since  1835,  has  the  true  balance  of  these  suspense  accounts  ever 
lieen  otherwise  than  has  been  returned  by  Mr.  Swartwout  hi  his  quarter- 
ly accounts  to  the  Treasury;  and  that  at  the  end  of  no  quarter  has  it  been 
otherwise  than  a  balance  largelij  in  favor  of  Mr.  Swartivout.  It  is  ob- 
Tiously  most  easy,  by  selecting  portions  of  these  subordinate  accounts, 
and  separating  them  from  the  remainder,  to  exhibit  a  balance  against  him 
at  any  date  that  may  be  desirable,  since  the  commencement  of  his  ac- 
counts. But  such  a  procedure  is  not  to  be  justified  upon  any  principle  of 
Ihonorable  dealing. 

Nor  is  the  character  or  dates  of  Mr.  Swartwout's  defalcations  at  all 
altered  by  the  fact,  that  to  one  subdivision  of  his  subordinate  and  sus- 
pense accounts,  he  credited  the  Government,  or  charged  himself  with 
moneys  from  his  cash  account,  or  from  the  Treasury,  which  should  have 
lieen  thus  credited  or  charged  to  a  diti'erent  subdivision  ;  for  thereby  the 
true  balance  of  those  accounts  resolved  quarterly  into  one  aggregate,  and, 
as  carried  into  each  quarterly  account  to  tlie  Treasury,  under  the  general 
designation  heretofore  described,  and  into  the  only  account  known  to  the 
Treasury,  was  in  no  4t^g'"ee  lessened,  enlarged,  or  affected.  If  it  were 
true  that  the  collector  had  been  recjuired  to  make  separate  settlements 
at  the  Treasury  on  these  subordinate  accounts,  or  subdivisions  of  his 
quarterly  account,  then,  an  erroneous  credit  of  moneys  to  one  subdivision 
would  proportionably  aifect  the  other  from  which  it  had  been  thus  divert- 
ed. Such,  however,  not  being  the  mode  of  settlement  known  to  the 
Treasury,  or  required  of  Mr.  Swartwout,  no  confusion  of  debits  ox  credits, 
however  great  it  might  be,  in  the  subordinate  accounts  of  the  collector  at 
'.he  custom-house,  could  furnish  ground  of  reproach  upon  the  collector'^ 
quarterly  account  current  at  the  Treasury  Department,  where  nothing  is 
required,  cared,  or  Icnown  about  his  subordinate  accounts. 

All  the  items  charged  upon  Mr.  Swartwout  as  defalcations,  dating  an- 
iiiiior  to  1837,  are  found  by  the  committee  to  have  been  entered  in  the 
proper  quarters  of  Mr.  Swartwout's  subordinate  accounts  at  the  custora- 
iiousc,  to  which  they  appertained,  and  carried  from  theni;  at  the  proper 


Kep.  No.  313.  15 

time,  to  his  quarterly  account  rendered  at  the  Treasury  Department; 
forming,  at  all  times,  a  component  part  of  the  aggregate  balance  exhibit- 
ed against  liimsclf 

Tliey  cotisist  of— .1st.  "Tonnage  duties,"  $2,211  39,  minus  g488  1.5; 
2d.  "  Forfeitures  and  penalties,"  ^539,823  12;  3d.  "  Treasury  warrants," 
^39,240  05  ;  4th.  "  Ottice  expenses,"  i^60,291  42  ;  oth. "  Cash  retained  for 
refunding  merchants,"  SS0,769  53:  total  gl21,907  36.  Their  iiistory 
will  be  considered  in  the  order  of  this  enumeration. 

1.    *'  TONNAGE   DUTIES." 

It  is  quite  apparent  that  the  Solicitor  and  Comptroller  of  the  Treasm'y^ 
in  their  examination  of  Mr.  Swartwout's  books  at  New  York,  in  Novem- 
ber last,  well-nigh  persuaded  themselves  that  tliis  item  did  not  amount  to 
a  defalcation,  or  even  just  charge  upon  Mr.  Swart  wont,  although  charged 
to  himself  in  his  accounts.  In  their  joint  report  to  the  Secretary  of  the 
Treasury,  (Ho.  Doc.  13,  p.  25,)  they  say:  "  It  men/  be  that  this  deficit  has 
arisen  from  errors  which  have  crept  into  the  account  during  the  five  years 
through  which  it  extends.  The  amount  is  so  small  as  to  give  color  i& 
this  supposition." 

The  examination  of  Mr.  Fleming,  auditor  of  the  customs  under  botk 
the  late  and  present  collector,  was  as  folloM^s,  upon  this  item  : 

Examined  by  Mr.  Smith. 

Question  84.  Mr.  Swartwout  has  been  represented  as  a  defaulter  obl 
his  accounts  to  the  amount  of  y^2,271  39,  for  "  tonnage  duty,"  accruing 
in  the  years  of  1830,  '31,  '32,  and  '33,  and  which  sum  has  not  been  deb- 
ited in  his  cash  accounts.  Do  you  or  do  you  not  bt^licve,  from  the  ex- 
amination you  have  made  of  said  accounts,  that  said  amount  is  not  prop- 
erly chargeable  to  Mr.  Swartwout  as  a  defalcation,  but  should  have  been 
set  down  as  error,  from  which  no  money  was  realized  by  him  ? 

..Answer.  I  believe  that  said  amount  was  purely  an  error.  A  vessel 
may  have  been  subject  to  tonnage  duty,  and  yet,  from  inadvertence,  it 
may  not  have  been  collected  at  the  custom-house  ;  and  when  the  tonnage 
account  was  made  up  for  the  Treasury,  the  omission  may  have  been  dis- 
covered ;  consequently,  the  collector  would  credit  the  United  States  for 
the  money,  and  rely  upon  collecting  it  afterwards,  and  yet  never  realize  it 

Mr.  Nathaniel  Shultz,  the  predecessor  of  Mr.  Fleming  in  the  auditor's 
office  of  the  custom-house  down  to  July,  1836,  was  subsequently  called, 
and  the  following  examination  was  had  of  him  on  the  same  point  : 

Examined  by  Mr.  Curtis. 

Question  83.  Will  you  examine  the  statement  presented  by  Mr.  Gilpin 
and  Mr.  Barker  in  their  letter  of  the  15th  November,  1838,  (paper  15 
in  Doc.  13,)  and  sny  whether  their  statement  of  Mr.  Swartwout's  defal- 
cation prior  to  (July,  1836,)  the  time  you  left  the  custom-house,  be  cor- 
rect or  not ;  and  if  incorrect,  point  out  wherein  ? 


14  Rep.  No.  313. 

jinsiver.  In  respect  to  all  that  is  said  about  tonnage  duties,  \he\x  state-* 
ment  is  erroneous.  INlr.  Swartwout  regularly  entered  all  the  tonnage 
duties  and  money 'received  therefor,  upon  his  cash  book,  and  other 
books,  and  accounted  regularly  for  the  same  in  his  quarterly  and  other 
returns.  I  am  certain  of  this,  and  I  show  yon  noic,  in  tiie  book  before 
the  committee,  the  cash  book,  and  other  books,  that  they  were  so  entered 
and  accounted  for  at  the  proper  times^  It  is  not  right  to  say  Mr.  Swart- 
wout is  a  defaulter  for  any  of  these  items  of  tonnage  duties ;  and  I  main- 
tain and  sliow,  by  the  books  and  returns,  that  they  have  been  regularly 
accounted  for  to  the  United  States. 

2.  ''  FORFEITURES  AND  PENALTIES." 

The  item  of  "  forfeitures  and  penalties,"  now  charged  as  a  defalcation, 
is  thus  stated  by  the  Solicitor  and  Comptroller  in  their  joint  report,  before 
named,  p.  25: 

'*  The  'forfeitures  and  penalties'  belonging  to  the  United  States  consti- 
tute the  second  fund,*  in  which  there  is  a  deficit.  It  amounts,  in  the 
aggregate,  to  ^39,823  12.     Of  this,  there  occurred — 

In  the  year  1S32,  the  sum  of         -  -  -    ^29,632  46; 

In  the  year  1833,  the  sum  of         -  -  -        3,674  04; 

In  the  year  1834,  the  sum  of         -  -  -        1,173  09; 

In  the  year  1835,  the  sum  of  -  -        5,343  53; 

.823   12." 


Of  this  item,  the  examination  of  Mr.  Fleming  was  as  follows  : 

Examined  by  Mr.  Smith. 

Question  85.  In  House  Doc.  13,  before  named,  the  Solicitor  of  the 
Treasury  reports  Mr.  Swartwout  as  a  defaulter,  in  the  sum  of  ^39,823  12, 
for  "forfeitures  and  penalties"  received  by  him  during  the  years  1832, 
'33,  '34,  and  '35,  and  not  debited  in  his  cash  account.  Please  to  examine 
the  original  of  Mr.  Swartwout's  quarterly  returns  in  the  custom-house 
book,  now  before  you,  and  state  if  the  several  receipts  of  money  by 
Swartwout,  amounting  to  said  aggregate  sum,  are  not  specifically  en- 
tered in  his  quarterly  returns,  to  the  Treasury  Department,  and  in  the 
order  of  their  receipt,  under  the  plain  designation  o{  '•^  a 772 ov.nt  of  fo7fieit- 

ures  received,  per  abstract  "  ?     If  yea,  please  to  copy  such  entries, 

verbatim,  as  you  find  them  on  the  original  of  Swartwout's  returns,  des- 
ignating the  quarter  of  each  year  in  which  they  are  found. 

Ansioer.  There  are  several  receipts  of  money  specifically  entered  in 
Mr.  Swartwout's  quarterly  accounts  current,  and  are  as  follows  : 

.2d  quarter  1832,  "  By  amount  of   forfeitures  received,  per 

abstract  G"    -             -             -  -   §2,200  33 

3d  quarter  1832,  "  By  amount  of  forfeitures  received,  per 

abstract  G"    -             -             -  -      1,946  61 

*  The  reader  should  hoar  in  mind  that  tlic  diflV-rent  sources  of  puhlic  moneys  received  by  a 
eollector  do  not  (create  disthict  funds  in  his  hands,  and  are  not  known  as  such  hy  any  Treasury 
regulation.  They  all  resolve  themselves,  as  fast  as  collected,  into  one  fund  ;  are  accounted  for 
by  the  collector  in  one  return  ;  and  are  drawn  upon,  or  passed  to  the  credit  of  the  Treasury,  as 
one  ma-ss. 


Rep.  No.  313.  15 

4th  quarter  1S32,  "  By  amount   of  forfeitures   received  this 

quarter,  per  abstract  G"         -  -^25,107  92 

1st  quarter  1833,  "  By  amount   of  forfeitures   received  this 

quarter,  per  abstract  J"          -  -         374  35 

2d  quarter  1833,  ''  By  amount  of   forfeitures   received  this 

quarter,  per  abstract  H"         -  -      1,612  64 

4th  quarter  1833,  "  By  amount    of   forfeitures   received  this 

quarter,  per  abstract  J"           -  -      1,687  05 

3d  quarter  1834,  "  By  amount  of    forfeitures   received  this 

quarter,  per  abstract  H"  -  -  299  55 
4th  quarter  1834,  "  By  amount  of  forfeitures  and  penahies, 

per  abstract  J"  -  -  -  1,080  37 
4th  quarter  1S35,  "  By  amount    of  .forfeitures  received,  per 

abstract  J"     -             -             -  -      5,342  53 


!9,651   35 


The  aggregate  of  the  above  varies  somewhat  from  the  aggregate  con- 
tained in  the  interrogatory ;  but  in  its  details  it  is  essentiahy  the  same. 

Question  86.  Have  the  alphabetically-marked  abstracts,  referred  to  in 
the  above  entries  of  Swart  wont's  quarterly  accounts  current,  as  specified 
in  your  last  answer,  been  invariably  sent  to  the  Treasury  Department, 
with  explanatory  vouchers, and  in  company  with  said  quarterly  accounts; 
and  are  similar  vouchers  and  abstracts  sent  in  explanation  of  every  other 
item  of  credit  contained  in  the  collector's  quarterly  returns  ? 

*-^nswer.  To  the  wiiole  of  the  interrogatory  I  answer,  yes. 

Examined  by  Mr.  Wise. 

Question  90.  Were  not  the  "forfeitures"  which  Mr.  Swartwout  re- 
ceived, all  credited  to  Government  in  his  quarterly  accounts  current;  and 
were  they  not  carried  forward  regularly  in  the  balances  due  Government 
on  said  accounts  ? 

^^nsiver.  They  were. 

The  examination  of  Mr.  Shultz  on  this  point  was  as  follows: 
Examined  by  Mr.  Curtis. 

Question  1.  Were  you  formerly  auditor  of  the  custom-house  at  New 
York  ?  If  yea,  how  long  did  you  perform  the  duties  of  that  station,  and 
when  did  you  retire  from  it  ? 

Ans7ver.  I  was  formerly  auditor.  I  think  I  was  about  thirty-seven 
years  auditor  at  the  custom-house  in  New  York.  I  retired  on  the  1st  of 
July,  1S36,  having  been  thirty-eight  years  and  four  mouths  in  the  cus- 
tom-house. 

Question  4.  Did  the  accounts  rendered  by  you,  as  auditor  of  the  cus- 
tom-house, to  tiie  Treasury  Department,  truly  set  forth  the  state  of  the 
accounts  between  Swartwout  and  the  United  States? 

Jinsioer.  Tlie  accounts  of  Mr.  Swartwout  were  correct  up  to  the  31st 
of  March,  1S36,  with  the  exreption  of  the  forfeitures  as  already  stated,  as 
far  as  my  knowledge  extended. 


^2,200 

33 

1,946 

61 

25,107 

92 

374 

35 

1,612 

64 

1,687 

05 

299 

55 

•  1,080 

37 

725 

02 

5,342 

53 

^40,376 

37 

16  Rep.  ISo.  313. 

Question  5.  What  reason  have  you  to  say  they  were  correct  ?  What 
means  of  knowledge  had  you? 

Aiistuei'.  The  accounts  underwent  a  critical  examination  by  me;  so 
that  if  there  was  an  error  of  one  cent,  I  had  the  means  of  discovering  it 
by  proving  the  accounts. 

Question  7.  Can  you  inform  the  committee  when  these  forfeitures,  to 
the  amount  of  {§40,000,  were  paid  over  by  the  marshal  to  Mr.  Swart- 
wout? 

Answer.  They  were  paid  by  the  marshal  to  him  as  follows: 
2d  qnarter,  1S32       -  -  -  -  - 

3d  quarter,  1832       ----- 
4th  quarter,  1832     -  -  .  -  . 

1st  quarter,  1833      ---*-_ 
2d  quarter,  1833       -  -  -  -  - 

4th  quarter,  1833- 

3d  quarter,  1834      ----- 
4th  quarter,  1834- 

3d  quarter,  1835      -  -  -        .      - 

4th  quarter,  1835- 


Mr.  Swartwout  gave  to  me  regularly  the  acf'ounts  relating  to  those 
forft  itures;  they  were  by  me  examined  and  regularly  passed  to  the  credit 
of  the  United  States  in  the  account  current  for  the  quarters  as  they  are 
above  stated,  and  as  they  were  returned  to  the  Treasury.  A  few  of  the- 
above  items  were  paid  to  the  cashier  of  the  custom-house,  and  about 
^40,000  were  outstanding  or  unpaid  on  the  31st  of  March,  1836. 

In  answer  13,  Mr.  Shultz  says : 

"  The  next  item  is  'forfeitures  and  penalties,'  amounting  to  ^39,823  12; 
the  amount  of  this  item,  I  have  already  shown  the  conmiittee,  by  the 
books,  the  '  cash  book,'  the  '  book  of  general  accounts,'  '  account  current 
book,'  (from  which  last  book  the  quarterly  accounts  are  copied  and  sent 
to  the  Treasury  Departmenf,)  was  regularly  credited  to  the  United  States. 
But  Mr.  Swartwout  retained  a  large  portion  of  th.is  amount  in  his  hands; 
and  the  weekly  returns  showed  that  he  retained  this  money  at  the  time, 
because  they  did  not  acknowledge  the  receipt  of  it.  His  accounts  for- 
warded to  Washington  sliowed  that  he  owed  this  money  to  the  United 
States." 

Excnnined  hy  Mr.  Foster. 

Question  20.  You  have  stated  in  your  answer  to  the  seventh  question 
by  Mr.  Curtis,  that  the  amount  received  in  the  fourth  quarter  of  1832  by 
Mr.  Swartwout,  for  forfeit tues  belonging  to  the  United  States,  was 
$25y\01  92.  Now,  will  you  state  how  that  sum  was  credited  to  the 
Government? 

Answer.  It  was  credited  in  his  quarterly  return  for  that  quarter,  as  fol- 
lows:  "By  amount  of  forfeitures  received  this  quarter,  per  abstract  G,.'* 
ig25,107  92. 


Eep..  No.  313.  1^ 

3,    "  TREASUIIY  WARRANTS." 

In  relation  to  this  item,  the  examination  of  Mr.  Fleming  was  as  follows  r^ 

Examined  by  M?\  Smifh. 

Question  22.  In  the  joint  report  of  the  Comptroller  and  Solicitor  of  the 
Treasury  to  the  Secretary  of  the  Treasury,  contained  in  House  document 
13,  3d  session  25th  Congress,  page  26,  in  relation  to  i/iree  Treasury  ivur- 
rants  received  by  Mr.  Swartwoul,  amounting  to  .^39,240  05,  it  is  said  : 
"  Their  receipt  appears  by  his  books,  but  the  proceeds  have  never  been 
debited  in  his  cash  account ;  and  thtiir  wliole  amount  stiU  remains  entirely 
^unaccounted  for,"  Is  it,  or  is  it  not,  true  that  said  Treasury  Warrants 
are  accounted  for  on  Mr.  Swartwout's  books  at  the  custom-house,  and 
form  a  portion  of  the  aggregate  balance  due  from  him  to  the  Government  ? 
Answer.  It  is  true  that  these  warrants  are  accounted  for  on  Mr.  Swart- 
wout's books,  and  that  they  form  a  part  of  the  balance  due  the  United 
States,  and  have  been  carried  forward,  in  the  aggregate  balance  of  each 
quarter,  down  to  the  close  of  his  term  of  office. 

Examined  by  Mr.  Oivens. 

Question  56.  Refer  to  your  answer  to  the  22d  question,  propounded  by-. 
Mr.  Smith,  and  say  whether  tlie  warrants  alluded  to  were  accounted  for 
by  Swartwout,  except  so  far  as  they  form  part  of  the  balance  due  to  the 
United  States,  and  whether  he  stands  debited  with  the  amount  in  his  cash 
account  ? 

Answer.  For  the  warrants  alluded  to,  Mr.  Swartwout  never  entered 
the  amounts  to  his  debit  in  his  own  cash  account ;  and  they  were  therefore 
held  in  suspense,  although  they  continually  formed  part  of  the  outstanding 
balance  due  to  the  United  States. 

In  answer  13,  (examined  by  Mr.  Curtis,)  Mr.  Shultz  says,  alluding  to 
the  Solicitor  and  Comptroller's  report.  House  document  13  :  "The  state- 
ment of  Messrs.  Gilpin  and  Barker,  in  regard  to  these  items,  is  wholly  in- 
correct. These  warrants  were,  to  my  knowledge,  applied  to  the  purposes 
for  which  they  were  received,  and  regularly  accounted  for.  I  have  shown 
you  that  they  were  regularly  entered  in  the  'cash  book,'  and  in  the  book 
called  'collector's  book  of  official  accounts,'  which  contains  the  'accounts 
of  expenses  of  his  office,  and  emoluments  and  fees.'  I  lay  before  the  com- 
mittee the  last-mentioned  book,  and  show  the  application  of  each  of  the 
said  warrants.  A  quarterly  and  annual  account,  returned  to  the  Treasury 
Department  at  the  proper  time,  contain  a  full  explanation  of  these  items." 

The  same  witness  was  subsequently  examined  (by  Mr.  Ciu'tis)  as  fol- 
lows : 

Question  15.  Can  you  give  a  statement  copied  from  the  "  book  of  fees 
and  emoluments,"  to  show  the  application  of  the  three  Treasury  warrants  ? 

Answer.  In  answer  to  the  13th  interrogatory,  I  yesterday  showed  the 
book  to  the  committee,  and  proved  tliatthe  proceeds  of  the  three  Treasury 
warrants  issued  in  1S34  and  1S35  were  applied  actually  to  the  payment 
of  the  clerks  for  the  year  1834. 

The  markers,  gangers,  weighers,  measurers,  inspectors,  &c  ,  and  all  offi- 
cers except  clerks,  are  appointed  by  the  Secretary  of  the  Treasury,  are  re- 


18  Bcp.  No.  313. 

garded  as  public  officers,  and  are  paid  out  of  the  public  money,  which  is 
charged  in  the  account  of  the  collector  with  the  tJnited  States  quarterly. 
The  fees  and  commissions  of  the  collector  are  appropriated  to  pay  the 
•clerks,  and  an  account  of  the  fees  and  commissions  is  kept ;  and  if  they  fall 
short  of  a  sufficient  sum  to  pay  the  clerks.  Hie  Treasury  Department  sends 
on  warrant  upon  the  Treasurer  to  make  up  the  sum  sufficient  to  pay  the 
clerks.  There  was  a  deficiencv  of  fees  and  emoluments  to  pay  the  clerks 
in  1834. 

The  three  warrants,  amounting  to  S39,240  05,  before  mentioned,  were 
received  for  that  purpose.     I  have  made  a  copy  of  the  account  referred  to 
in  the  answer  to  the  13th  interrogatory,  and  it  shows  that  the  proceeds  of 
those  three  warrants  were  applied  to  pay  the  clerks.     The  account  is  a, 
true  copy,  and  is  marked  B. 

Copies  of  these  accounts,  quarterly  and  annual,  with  the  vouchers,  were 
forwarded  to  the  Treasury  Department. 

4.    "  OFFICK   EXPENSES." 

In  relation  to  this  item,  Mr.  Flemin,s;^s  examination  was  as  follows : 

Examined  by  Mr.  Smith. 

Qiiestio7i  98.  On  page  26  of  House  document  13,  in  the  report  of  the 
/Solicitor  and  Comptroller  of  the  Treasury,  Mr.  Swartwout  is  charged  with 
i860,291  42,  alleged  to  have  been  drawn  by  him  for  expenses  of  his  office, 
beyond  the  actual  amount  of  those  expenses,  during  the  years  1835, 1836, 
and  1837,  and  that  in  said  sum  he  is  a  defaulter  to  the  Government. 
Please  to  state  whether  each  of  the  sums  received  by  Mr.  Swartwout, 
making  up  said  aggregate  of  expenses  overdrawn,  was  not  carried  into 
and  made  a  component  part  of  the  balance  of  the  quarterly  accounts  re- 
turned to  the  Treasury  Department. 

Answer.  They  were.  - 

Mr.  Phillips,  cashier  of  the  custom-house  under  Mr.  Swartwout,  testi- 
fied as  follows  : 

Examined  by  Mr.  Smith. 

Question  42.  Please  to  examine  pages  26,  43,  and  44,  in  before-named 
House  document  1 3,  and  say  whether  you  furnished  the  Solicitor  of  the 
Treasury,  or  Mr.  Underwood,  clerk  in  the  otfice  of  the  Auditor  of  the 
Treasury,  with  any  information  relative  to  any  of  the  defalcations  amount- 
ing to  ^60,291  42,  there  charged  upon  Mr.  Swartwout  under  the  head  of 
"  cash  drawn  to  jjay  expenses  of  office,  more  than  ammtnt  of  same,  not 
debited  in  cash  account;''''  or  do  you  know,  or  have  you  ever  known,  of  any 
such  defalcation  ? 

Answer.  I  have  no  knowledge  of  the  statement  in  page  26,  document 
13,  of  "cash  withdrawn  for  the  alleged  purpose  of  paying  expenses  of  the 
-office,"  &c.,  amoimting  to  $60,291  42,  nor  of  similar  statements  on  pages 
43  and  44,  and  I  do  not  know,  or  ever  have  known,  any  such  defalcation. 

5.    "  CASH   RETAINED   FOR  REFUNDING  MERCHANTS." 

This  item  of  ^80,769  53,  since  first  set  apart  by  Mr.  Swartwout,  has 
never  ceased  to  be  reported  to  the  Treasury  Department  in  jiis  quarterly 
accounts,  as  a  part  of  his  aggregate  balance  of  cash  and  unsettled  accounts. 
When  originally  retained,  it  was  expressly  reported  in  his  weekly  return 


Rep.  No.  313.  19 

to  the  Secretary,  "  Mardi  26,  1836,"  as  follows:  "  Returned,  fur  refund- 
ing to  merchants,  SSO,769  53.^^  (See  extracts  from  custom-house  books 
in  Mr.  Fleming's  testimony,  Com.  Jour.)  And  in  his  succeeding  weekly 
lelurn,  dated  March  .'31, 1836, he  reported,  for  that  \veek,ascash  received, 
)ig64,905  49,  (see  same  testimony;)  and  in  his  quarterly  return,  ending  on 
the  same  date,  March  31,  1836,  he  reported  as  follows:  "  Cash  retained 
the  31.s7  March,  1836,  J&145,675  02."  (See  continuation  of  same  testi- 
mony. Committee's  Journal.)  Thus  expressly  comlnning  the  cash  of  those 
two  weeks  into  his  cash  and  suspense  account,  with  the  knowledge  of 
the  Treasury  Department.  Moreover,  Mr.  Fleming  says,  in  his  75th 
answer  to  Mr.  Smith,  (Com.  Jour.,)  that  this  sum  was  retained  by  Mr. 
Swart  wout  ^'  ivith  the  knowledge  of  the  Treasury.^'  It  always  constitu- 
ted, thereafter,  a  component  part  of  Mr.  Swartwout's  quarterly  balance  re- 
ported by  himself  to  the  Treasury;  and  on  this  3fr.  Fleming  was  interro- 
gated by  Mr.  Smith,  and  answered  as  follows  : 

Question  15.  Could  "the  large  sum  of  ^^80,769  53,"  described  in  your 
last  answer,  retained  by  Swartwout  in  1836,  have  become  a  defalcation  if 
the  Treasury  Department  had  not  lost  sight  of  it  in  the  examination  of 
his  accounts,  inasmuch  as  you  say  in  your  last  answer  that  it  was  retained 
**  with  the  knowledge  of  the  Treasury?" 

Jinswer.  It  could  not. 

With  such  evidence  before  them,  the  committee  do  not  feel  justified 
in  sustaining  or  acceding  to  the  correctness  of  the  view  presented  to  the 
House  and  country  by  tlie  Executive  and  the  Treasury  officers,  in  House 
document  13,  that  Mr.  Swartwout  became  a  defaulter  at  any  time  prior 
to  1S37  on  either  of  the  items  of  account  above  enumerated — amounting 
in  all  to  §22 1,907  36.  On  the  contrary,  he  accounted  for  them  properly 
to  the  Treasury,  but  was  permitted  to  retain  them  until  his  last  quarter  of 
service ;  and  then,  and  not  imtil  then,  was  he  required  to  pay  them ;  and 
then  did  he  become  a  defaulter  for  them,  and  not  before.  There  has  not 
been  discovered  any  evidence  whatever  that,  in  regard  to  this  portion  of 
his  present  indebtedness,  Mr.  Swartwout's  accounts,  either  at  the  custom- 
house or  as  returned  to  the  Treasury,  bear  any  impress  of  fraud  or  de- 
ception ;  for  what  was  omitted  to  be  charged  on  one  of  those  accounts,  was 
fully  charged  on  another  of  them.  Yet,  in  fact,  if  there  was  any  such 
fraud  or  deception,  it  was  confined  to,  and  consisted  in,  the  manner  of 
keeping  his  accounts  at  tfie  custom-house,  (with  which  the  Treasury,  as 
remarked  in  a  former  part  of  this  report,  had  nothing  to  do,)  and  it  ceased 
with  the  making  out  of  his  quarterly  accounts  to  the  Treasury,  inasmuch 
as  in  the  latter  these  sums  were  always  inchided  in  the  item  of  "  cash  and 
unsettled  accounts ;"  and  the  only  variation  between  the  quarterly  returns 
to  the  Treasury  and  the  accounts  at  the  custom-house  is  found  to  have 
been  in  the  fact,  that  in  the  former  he  specified  as  "  cash  and  unsettled 
accounts^^  the  very  items  which  are  now  in  question,  while  at  the  custom- 
house these  items  were  retained  in  the  unsettled  accounts,  and  not  in  the 
cash  account.  In  other  words,  '*  it  was  only  on  the  books  of  the  custom- 
house that  it  appears  he  concealed  and  suppressed  the  true  cash  balance 
in  his  hands."  Ho  A'-,  then,  can  he  be  said  to  have  been  in  default  on  his 
accounts  loith  the  Treasury,  at  aiiy  period,  for  these  items? 

The  examination  of  Mf.  tFudcrwood,  the  Treasury's  own  agent  to  in- 
vestigate the  accounts,  fully  elucidates  and  substantiates  the  views  here 
presented  and  adopted  by  the  committee. 


20  Rep.  No.  313. 

Examined  by  Mr.  Owens. 

Question  29.  Refer  to  your  answer  to  the  5th  question,  propounded  by 
Mr.  Curtis,  and  say  whether  the  accounts  of  which  you  there  speak  cor- 
responded with  the  accounts  as  contained  in  the  books  of  Mr,  Swartwout 
at  the  custom-house  at  New  York,  and  examined  by  you,  both  cash  and 
other  books ;  and,  if  they  were  at  variance,  slate  distinctly  in  what  con- 
sisted the  dilference. 

vinswer.  The  quarterly  accounts  rendered  to  the  Treasury  correspond- 
ed with  the  accounts  at  the  custom-liouse,  so  far  as  to  make  up  the  ag- 
gregate balance  ;  but  on  examination  at  the  custom-house,  of  the  *•' sus- 
pense account,"  which,  in  connexion  with  the  "cash  on  hand,''  formed 
one  item  in  the  balance  of  his  quarterly  account,  it  appeared  that  several 
sums,  such  as  Treasury  warrants,  moneys  arising  from  forfeitures^ 
&c.,  to  a  large  amount,  were  retained  in  his  suspense  account,  which 
should  have  been  recognised  and  accounted  for  in  his  cash  account :  in 
this  consisted  the  difference  between  the  collector's  accourits  on  his  books 
and  those  returned  to  IheTrcasury — a  difference  which, as  has  been  pre- 
viously stated,  did  not  affect  the  ai^i^re^ate  balance  due  from  Mr.  Swart- 
wout, but  only  the  particulars  of  said  balance. 

Question  30.  Refer  to  your  answer  to  the  3d  question  propounded  by 
Mr.  Curtis ;  say,  though  he  (Swartwout)  omitted  no  debit  or  credit  to  the 
United  States  in  his  quarterly  accoimts,  as  stated  in  that  question,  whether 
he  did  or  did  not  omit  to  debit  himself  with  cash  received  ;  and  state  the 
amount  of  cash  not  so  debited,  from  your  knowledge  of  the  accounts  of 
Swartwout  as  rendered  to  tlic  7\uditor's  Department  at  Washington,  and 
the  examination  of  his  cash  or  other  books  at  the  custom-house  at  New 
York.  Be  as  clear  and  distinct  on  the  subject  as  your  knowledge  will 
enable  you  to  be. 

Answer.  In  the  last  answer,  I  have  stated  that  in  the  "  suspense  ac- 
count," kept  by  the  collector  at  the  custom-house,  he  had  entered  certain 
sums  to  the  debit  of  said  account  which  should  have  been  charged  to  his 
"cash  account.'"'  The  amount  of  said  sums,  as  will  be  seen  by  reference 
to  document  No.  13,  was  55^21,907  36.  It  was,  therefore,  in  the  cash  ac- 
count kept  by  him  at  the  custom-house  that  he  omitted  to  charge  himself 
with  the  above  amount,  and  not  in  his  quarterly  accoujits  rendered  to 
the  Treasury,  in  ichich  it  is  believed  he  credited  and  held  himself  ac- 
countable for  all  duties  received  by  him. 

Question  31.  Refer  to  your  answer  to  the  6th  tjuestion  propounded  by 
Mr.  Curtis,  and  say  whether,  upon  examination  of  Swartwout's  accounts 
as  rendered  at  the  Auditor's  olfice,  the  dof  ilcation  could  have  been  readily 
detected  or  not  ;  and  whether,  upon  the  examination  of  all  or  part  of  the 
books  at  the  custom-house,  and  in  reference  to  the  accounts  rendered  by 
Swartwout,  the  defalcation  was  not  apparent  to  you ;  and  state  whether, 
though  the  true  and  as^i^rres^ate  balance  of  his  accounts  was  not  concealed 
by  means  of  fraud  ')r  falsehood,  he  did  not  in  those  accounts  conceal  and 
suppress  the  true  cash  balance  in  his  liands. 

Answer.  No  part  of  the  defalcation  could  have  been  ascertained  from 
an  examination  of  Mr,  Swartwout's  quarterly  accounts  rendered  to  the 
First  Auditor  prior  to  that  arising  on  the  bonds,  which  xvould have  been 
made  to  appear  on  a  thorous(h  examination  of  them  at  the  time  thetf 
were  received  at  the    Treasury.     In  the  collector's  quarterly  account  hi& 


Eep.  No.  313.  21 

always  included  llie  "cash  and  uusettled  accounts"  in  one  item  of  the 
balance,  and  there  was  no  means  in  tlie  First  Auditor's  othcc  of  distin- 
guishing the  actual  cash  from  the  amount  of  tmsciiled  and  suspense  ac- 
counts. //  is  therefore  only  on  the  books  of  the  custom-house,  so  far  as 
I  know,  that  it  appears  he  '•  concealed  and  suppressed  the  true  cash 
balance  in  his  hands.''' 

Corroborative  of  the  view  tlius  taken  byllie  committee,  they  will  quote 
also  another  portion  of  Mr,  Fleming's  testimony,  Avhich  clearly  indicates 
that  he  would  not  be  led  into  an  answer  that  would  imply  it  as  his  opin- 
ion that  JNIr.  Swartwout  was  or  can  justly  be  regarded  as  a  defaulter 
prior  to  1S37.  He  leaves  such  a  construction  wholly  to  the  responsibility 
of  the  execiuive  oIRcers. 

Exami)ied  by  Mr.  Smith. 

Question  73.  What  was  the  amount  of  Swart  wont's  defalcations  ari- 
sing prior  to  1S37,  and  subsequent  to  the  year  1830  ? 

^^nswer.  Tiie  amount  of  such  defalcations,  as  exhibited  in  the  report 
of  the  Secretary  of  the  Treasury,  in  document  iVo.  13,  to  the  House  of 
Representatives,  was  vS336,71S  69. 

Question  74.  Did  you  or  did  you  not,  in  your  examination  of  Swart- 
wout's  accounts,  deduce  and  furnish  to  the  Treasury  Department  the  data 
upon  which  the  Secretary's  report,  referred  to  in  your  last  answer,  is 
founded  ? 

./Inswer.  I  did  not  deduce  and  furnish  to  the  Treasury  Department 
such  data.  Mr.  Underwood,  of  that  Department,  came  on  to  this  city  in 
November  last,  to  investigate  the  accjunts  of  i\Ir.  Swartwout.  The  rec- 
ords of  the  custom-house  were  laid  before  him,  and  he  proceeded  to  draw 
up  a  statement,  gleaned  from  those  records,  and  from  memorandums  fur- 
nished him  by  the  assistant  cashier  of  the  custom-house,  which  enabled 
him  to  report  to  the  Treasury  the  indebtedness  of  Mr.  Swartwont.  From 
time  to  time,  in  the  progress  of  his  work,  Mr.  Underwood  found  it  neces- 
sary to  ask  explanations  from  me,  in  relation  to  the  records  of  the  custom- 
house, to  enable  him  to  pursue  his  laliors  understandingly. 

Examined  by  Mr.  Curtis. 

Question  121.  Were  any  of  the  quarterly  returns  false  ?  If  yea,  which 
of  them  ? 

Ansiver.  The  accounts  of  bonds  paidybr  the  first  and  second  quarters 
of  1837,  rendered  to  the  Treasury  Department,  ivere  false,  inasmuch  as 
they  did  not  contain  all  the  bonds  that  were  actually  paid,  by  a  very  large 
amount,  and  which  Is  seen  in  document  No.  13,  of  the  House  of  Repre- 
sentatives. 

Again,  Mr.  Fleming  was  asked  by  Mr.  Smith  : 

Question  2.  When  was  the  first  deficiency  in  ^Ir.  Swartwout's  accounts 
detected  by  you;  and  to  wliom  and  when  did  you  communicate  the  first 
information  of  your  discovery  ? 

^^nswer.  The  first  deficiency  in  Mr.  Swartwout's  accounts  was  detected 
by  me  in  the  month  of  June,  1S37.  I  noticed  the  circumstance  to  Mr. 
Phillips,  the  assistant  cashier,  at  the  same  time. 


22  Rep.  No.  313. 

Qtiesiijn  3.  What  was  tlie  amount  of  said  deficiency  discovered  by 
you  ill  .Trine,  1837  ;  and  to  whom,  and  when,  if  to  any  other  person  than 
JNIr.  PhiUips.  did  you  give  information  thereof? 

.hi.swirr.  Tiie  amount  of  deficiency  was  ahout  S500,000  ;  and  the  reply 
of  Mr.  Phinii)s,  on  my  conmiunicating  to  him  the  intelhgence,  prevented 
my  mentioning  it  to  olhers. 

Question  \.  What  was  Mr.  Philhps's  reply,  adverted  to  in  your  last 
answer  ? 

Answer.  The  reply  was,  that  tlie  cash  book  contained  all  the  bonds 
that  had  been  paid  at  the  ollice ;  the  residue  were  in  suspense. 

Exitmined  hy  Mr.  Fo.ster. 

Question  46.  You  mention  in  your  answer  to  tlie  15th  interrogatory, 
that  you  have  never  known,  or  detected,  at  any  time,  any  false  return  or 
erroneous  statement  in  any  quarterly  account  made  by  Mr.  Swartwout  to 
the  Treasury  Depar;ment.  Now.  will  you  state  whether  there  were  not 
false  or  fraudulent  omissions  by  Mr.  Swartwout  in  his  accounts,  which 
were  calculated  to  mislead  and  deceive  yourself,  as  auditor,  and  the 
Treasury  Department ;  and  if  so,  what  were  those  omissions,  and  tuheriy 
as  far  as  you  know,  did  those  omissions  take  place? 

Answer.  There  were  such  omissions,  (as  is  now  ascertained,)  and  they 
eonsisted  in  Mr.  Swartwout's  keeping  out  of  liis  accounts  large  sums  of 
money  paid  to  him  on  revenue  bonds;  and  they  look  place  principally 
in  the  \st  and  2d  quarters  of  1837. 

W'hen  the  same  witness  was  carried  back  to  the  alleged  defalcations  of 
Mr.  Swartwout  prior  to  1837,  and  so  questionqd  as  to  lead  him,  if  dis- 
posed, to  describe  them  as  defalcations,  and  as  ^^ fraudulent^''  omissions, 
he  studiously  and  properly,  as  is  believed,  avoided  every  such  assump- 
tion. The  following  interrogatories  and  answers  will  fully  illustrate  this 
fiict: 

Air.  Fleming  examined  by  Mr.  Foster. 

Question  49.  In  your  answer  to  the  llUh  interrogatory,  in  stating  the 
balances  of  the  four  quarters  of  1834  and  the  two  first  (piarters  of  1835, 
the  whole  balance  of  each  quarter  is  stated  as  '■•due  the  United  States."^ 
Now,  is  that  intended  to  mean  any  thing  mon^  than  that  such  balance  is 
the  amount  for  which  he  was  responsible  to  the  Government,  and  not  as 
a  balance  which  he  was  then  liable  to  pay  ? 

wlnswcr.  The  balance  due  the  United  States,  which  is  charged  at  the 
end  of  every  quarter,  is  the  amount  for  which  the  collector  is  responsible 
to  the  Government,  and  includes  all  duties  which  had  accrued  up  to 
that  time,  xchether  collected  or  not. 

Question  50.  From  what  other  sources  did  Mr.  Swartwout  receive 
money  belonging  to  the  Government,  (besides  that  received  on  revenue 
bonds,)  which  he  fraudulently  omitted  to  charge  against  hitnselfin  his 
cash  accounts  on  the  cusfo??i-house  books?  And  what  was  the  amount, 
as  far  as  you  are  now  able  to  state  ilie  same  ? 

Answer.  Mr.  Swartwout  received  moneys  from  duties. payable  in  cash, 
as  well  as  bonds,  also  from  goods  forfeited  to  the  United  States,  and  also 
from  certain  Treasury  warrants,  remitted  to  liim  from  Government.     A 


Rep.  No.  313.  23 

furtlier  source  of  receipts  was  that  arising  from  deposites  for  duties  not 
ascertained,  and  payable  in  casli.  Mr.  Swartwout  also  advanced  to  him- 
self nionoys  for  the  expenses  of  his  office,  more  than  were  needed. 

The  total  amount  ot'  moneys  appropriated  by  Mr.  Swartwout,  and  not 
placed  to  the  debit  of  his  own  cash  account,  as  is  now  ascertained,  ex- 
clusive of  the  bond  account,  is  about  five  hundred  and  eighty  thousand 
dollars.  In  this  sum,  however,  is  embraced  the  amount  which  Mr. 
Swartwout  retained  on  his  going  out  of  ollice,  and  which  was  about 
$20\,0Q0. 

Qnestio7i  51.  Weie  the  omissions  of  Mr.  Swartwout,  as  stated  in  your 
last  answer,  such  as  to  deceive  you  in  regard  to  his  real  indebtedness  to 
the  Govermneiu  ? 

^^nsiuer.  No  examination  was  made  t©  ascertain  Mr.  Swartwout's  in- 
debtedness to  the  Govermnent  until  after  the  expiration  of  his  term  of 
office,  and  therefore  such  omissions  did  not  affect  the  adjustment  of  his 
current  quarterly  accounts ;  and  their  condition,  or  existence,  was  not  a 
matter  of  inquiry  by  me — the  outstanding  balance  of  a  previous  quarter 
being  always  brought  into  a  succeeding  quarter. 

Question  52.  In  auditing  the  weekly,  monthly,  and  quarterly  accounts 
o(  Mr.  Swartwout,  did  you  have  access  to  all  accounts,  abstracts,  and 
vouchers,  which  were  afterwards  sent  by  liim  to  the  Treasury  Depart- 
ment ? 

Jlnswer.  All  accounts  for  the  Treasury  Department  are  kept  in  the 
auditor's  office,  and  pass  under  my  supervision.  In  general,  I  made  a 
cursory  examination  of  all,  before  they  were  sent  from  the  custom-house. 

Mr.  Underwood,  the  confidential  agent  of  the  Treasury  Department, 
with  equal  care  and  ])ropriery,  throughout  his  testimony,  discriminates  be- 
tween the  accounts  of  Mr.  Swartwout  as  rendered  prior,  and  those  ren- 
dered subsequent,  to  the  commencement  of  the  year  1S37.  The  fravdulenf 
concealment  is  not  by  him  made  to  attach  to  any  returns  prior  to  1837^ 
but  to  "the  abstract  of  bonds  taken  and  paid  in  1S37." 

Examined  by  Mr.  Foster. 

Question  26.  You  say,  in  answer  to  the  6th  interrogatory,  that  you 
"have  no  reason  to  believe  that  in  Mr.  Swartwout's  quarterly  accounts, 
adjusted  at  the  Treasury,  he  concealed,  by  means  of  fraud  and  falsehood;, 
the  true  and  ug<^re<^ate  balance  of  his  account."  Will  you  please  to 
state  whether  yoi^  have  not  reason  to  believe  that  he  fraudulently  con- 
cealed in  those  accounts  the  true  amount  of  money  he  hud  received;  and 
were  not  his  accounts  so  made  out  as  to  induce  a  belief  that  he  liad  ac- 
counted ya/V/?/  for  all  the  money  which  had  come  to  his  hands? 

Answer.  When  I  said,  in  my  answer  to  the  6th  interrogatory,  "  I  have 
no  reason  to  believe  that  in  Mr.  Swartwout's  quarterly  accounts,  adjust- 
ed at  the  Treasury,  he  concealed,  by  means  of  fraud  and  falsehood,  the 
true  and  as^gregate  balance  of  his  awount ;"  I  meant  that  he  had  not  in 
those  accounts  omitted  to  credit  the  United  States,  and  make  himself  ac- 
countable for  all  the  duties  secured  by  him.  I  did  not  mean  to  convey 
the  idea  that  the  iteins  comprising  the  balance  of  his  account  were  not 
erroneous  in  amount,  a.ud  fraudulently  so  \  the  item  o{  ^^  bo7ids  uncol- 
lected''^ in  1837  being  too  large,  and  that  of  ^^  cash  and  unsettled  and 
suspense  accounts"  correspondingly  too  small.    I  have  reason  to  beheve^ 


24  Kep.  No.  313. 

that  by  the  abstract  of  bonds  taken  and  paid,  rendered  m  1S37,  "he  fraud- 
ulently concealed  the  true  amount  of  money  he  iiad  received,"  although, 
at  the  same  time,  the  ags;regate  balance  of  his  account  of  the  customs, 
for  each  quarter,  was  a  correct  one. 

With  equal  precision  the  First  Auditor  repudiates  the  idea  of  any  fraud 
or  defalcation  in  Swart  wont's  accounts  prior  to  1837.  He  was  examined 
by  Mr  Curtis,  and  answered  as  follows: 

Quest io?i.  6.  Was  there  any  omission,  in  Swartwout's  quarterly  returns 
to  your  otficc,  of  any  sum  or  item  which  he  ought  to  have  charged  to 
himself,  or  credited  to  the  United  States  therein?  In  otlier  words,  were 
not  Swartwout's  quarterly  returns,  in  point  of  form,  made  according  to 
the  standing  usages  and  orders  of  the  Treasury  Department ;  and,  in  point 
of  fact,  did  tliey  not  show  the  true  balance  due  from  Swartwout  ? 

Answer.  As  far  as  my  knowledge  extends,  the  quarterly  accounts  of 
Swartwout  were  rendered  in  the  usual  form,  and  the  proper  credits  for 
duties  secured,  and  other  moneys  received  by  him,  belonging  to  the  United 
States,  given ;  at  least  nothing  to  the  contrary  has  yet  been  discovered. 
Bat  they  were  erroneous  and  fraudulent  in  this:  tliat  he  failed  (as  appears 
from  the  late  investigation  by  the  Comptroller  and  Solicitor  made  at  the 
custom-house  in  New  York)  to  credit  his  bond  account  in  the  first  quar- 
ter of  1837,  and  in  some  subsequent  quartos,  with  the  full  amount  of 
bonds  paid  within  those  quarters ;  the  effect  of  which  was,  to  exhibit  a 
larger  balance  of  bonds  than  was  in  point  of  fact  on  hand,  and  to  lessen 
the  cash  balance  :  or,  in  other  words,  he  failed  to  accoiuU  truly  for  the  cash 
he  had  received  on  bonds ;  and  his  account  current  of  bonds  was  made  to 
exhibit  a  false  balance. 

The  defalcations  of  Mr.  Swartwout  in  1837,  and  the  first  quarter  of 
IS3S,  (priucii)ally,  however,  in  the  two  first  quarters  of  1837,)  consisted  of 
the  proceeds  of  bonds  falling  due  within  that  period,  and  collected  by  him. 
Of  all  these  bonds,  however,  he  had  regularly  charged  himself  in  his 
accounts  returned  to  the  Treasury  I)ei)artineiU,  and  they  constituted  a  por- 
tion of  the  aggregate  balance  due  from  him  to  the  Government.  When 
he  collected  them,  instead  of  paying  the  amoiuit  into  the  Treasury,  and 
thus  offsetting  the  charge  for  bonds  in  his  accoimts  rendered  to  the  Depart- 
ment by  a  charge  against  the  (Tovcrnment  of  the  cash  so  paid  into  the 
Treasury,  he  retained  and  used  llie  cash,  leaving  his  indebtedness  for 
bonds  in  its  original  amoiuu. 

Of  all  the  sum  withdrawn  from  his  bank-deposite  account  as  collector, 
and  used  for  private  purposes,  prior  and  subsequent  to  1837,  as  contained  in 
a  private  memorandum  kept  by  Mr.  Phillips,  his  cashier,  in  the  custom- 
liouse,  and  forming  a  part  of  tlie  reported  defalcation  in  House  doc.  1  3, 
the  evidence  is,  that  it  was,  from  time  to  time,  replaced  by  Mr.  Swart  wont's 
own  funds,  and  by  funds  derived  from  the  bonds  of  1837,  as  well  as 
by  anticipating  the  rash  or  other  duties  of  a  succeedins  week  to  make 
good  his  return  of  cash  reported  as  feceived  in  the  week  preceding.  This 
operation  cast  the  whole  defalcations  arising  from  the  use  of  the  moneys 
reported  by  Mr.  Phillips  upon  the  final  weekly  return  of  Mr.  Swartwout. 

p         Joshua  Vhillips  examined  by  Mr.  Smith. 

Question  63.  In  House  Doc.  13,  pages  52  and  53,  is  a  schedule  of  your 
own,  of  munerous  sums,  amounting  to  iSl 93,602  20,  which  were  drawa 


Rep.  No.  313.  25 

from  the  public  deposites,  by  Mr.  Swartwout,  for  his  own  use.  Do  you 
mean  said  sums  were  drawn  from  his  cash  deposites,  as  collector,  in  the 
banks.''  If  yea,  in  what  banks,  according  to  the  "check  books"  spoken 
of  by  you  at  the  foot  of  said  schedule?  Do  you  not  know  that  Mr.  Swart- 
wout also  replaced  money  thus  taken ;  and,  if  yea,  to  what  amount? 

Jlnsioer.  The  sums  referred  to  in  Doc.  13,  pages  52  and  53, amountmg 
to  ^193,G02  20,  were  drawn  by  him,  as  collector,  from  his  cash  deposites. 
They  were  drawn  from  the  Bank '  of  America,  Mechanics'  Bank,  and 
Manhattan  Company.  I  do  not  know  that  Mr.  Swartwout  ever  replaced 
any  of  the  particular  sums  contained  in  said  list.  He  was,  as  I  have  sta- 
ted, in  the  habit  of  drawing  money,  and  would  sometimes  replace  it;  but  I 
cannot  particularize  the  amounts.  I  was  not  always  in  the  habit  of  no- 
ting the  checks  that  Mr.  Swartwout  used,  and  I  cannot  undertake  to  say 
what  portion  of  the  above  amount  was  returned. 

Qucslion  04.  How  did  Mr.  Swartwout  conceal,  in  his  weekly  cash  re- 
turns to  the  Secretary  of  the  Treasury,  the  weekly  deficit  in  his  bank  ac- 
counts, occasioned  by  the  sums  withdrawn,  and  not  replaced,  to  which 
you  refer  in  your  last  answer  ? 

Jinsiuer.  The  collections  made  by  the  banks  up  to  3  o'clock  do  not  ap- 
pear on  the  books  of  the  cuslom-house  until  the  following  day ;  conse- 
quently, in  making  up  the  weekly  account  for  the  Treasury  Department, 
to  3  o'clock  on  Saturday,  tlie  amount  collected  at  the  bank  on  Saturday 
would  not  appear  on  the  custom-house  books  until  Monday  morning  ;  by 
this  means,  he  would  have  in  bank  the  collections  of  bonds  of  Saturday, 
which  do  not  appear  in  the  weekly  account  of  that  Saturday  ;  and  that 
amount,  so  collected,  would  be  carried  to  the  next  weekly  account,  and 
so  continue  on. 

Quesllon  71.  Please  now  to  state,  definitively,  whether,  taking  your 
63d,  G4th.,  and  70ih  answers,  does  it  not  necessarily  follow,  as  a  truth,  that 
the  aggregate  deficit  in  Mr.  Swart  wont's  cash  accounts  at  the  banks,  oc- 
casioned by  the  sums  withdrawn,  as  you  have  stated,  would  fall  into,  and 
be  betrayed  by,  his  last  and  final  weekly  cash  returns,  if  it  were  not  true 
that  such  deficit  had  been,  at  some  time,  and  from  some  source,  replaced 
by  him  ? 

jinswer.  The  aggregate  deficit  in  Mr.  Swartwout's  cash  account  at  the 
bank,  occasioned  by  the  sumswithdrawn,  would  be  betrayed  by  his  last  and 
final  weekly  cash  returns,  if  it  were  not  true  that  such  deficit  had  been, 
at  some  time,  replaced  by  him. 

Question  12.  Do  you  mean  to  be  understood  by  your  statement  (No. 
10)  in  the  before-named  House  Doc.  13,  commencing  at  page  54,  of  bonds 
which  were  paid  to  Mr.  Swartwout,  and  recapitulated  by  Mr.  Fleming, 
as  amounting  to  $5dl,SS\  63,  that  the  proceeds  of  said  bonds  were  never 
deposited  by  said  Swartwout  in  the  said  banks ;  and  that,  within  your 
knowledge,  they  did  not  form  a  component  part  of  the  funds  redrawn  by 
him  on  the  checks  alluded  to  in  your  last  answer  ? 

^^nswer.  I  mean  to  be  understood,  in  my  statements  (No.  10)  in 
document  13,  commencing  at  page  54,  that  the  proceeds  of  said  bonds 
w^re  deposited  in  bank  ;  and  the  amount  so  received  was  applied  by  him 
to  conceal  his  previous  defalcations,  which  would  have  been  discovered  if 
the  bonds  in  said  list  had  been  charged  on  the  cash  book. 

Quest  ion  13.  Did,  or  did  not,  the  process  resorted  toby  Mr.  Swartwout, 
as  alluded  to  in  your  last  answer,  to  conceal  his  previous  defalcations, 


26  Rep.  No.  313. 

consist  in  his  applying  said  amount  to  his  bank  deposites,  and  to  offset  his- 
b(?lbre-namcd  withdrawals  from  such  deposites  ? 

,^3)istve)\  Tlie  process  resorted  to  by^NIr.  Swartwout  to  conceal  his  pre- 
vious defalcations,  did  consist  in  his  applying  said  amount  to  liis  bank 
deposites,  and  to  offset  his  before-named  withdrawals  from  such  deposites. 

Henri/  Ogden,  cashier  of  the  customs  : 

Examined  by  Mr.  Smith. 

Question  19.  On  page  47,  of  House  Doc.  13,  heretofore  named,  is  your 
letter  to  H.  D.  Gilpin,  Esq.,  Solicitor  of  the  Treasury,  in  which  you  say 
that  Mr.  Swartwout's  use  of  the  public  moneys  ''  began  not  long  after  his 
appointment  as  collector" — that  is,  I  suppose,  in  1829.  Now,  will  you 
state  Avhether,  in  that  letter,  you  mean  to  refer  to  any  of  the  specific  items 
reported  in  said  document  as  defalcations  ;  or  do  you  refer  specially  to  his 
use  of  moneys  deposited  to  his  own  credit,  in  banks,  and  prior  to  its  be- 
ing credit(3d  to  the  Treasurer  of  the  United  States  in  such  banks? 

^dnsiver.  Mr.  Swartwout  commenced  drawing  out  of  the  bank,  against 
moneys  deposited  to  his  private  account,  about  nine  months  after  lie  came 
into  office.  Those  drafts,  I  think,  were  small.  I  have  no  allusion  to  any 
specific  items  reported  in  said  documents  as  defalcations.  I  had  no  knowl- 
edge of  them, 

Questioji  20.  Please  state  whether,  during  the  whole  period  that  Mr. 
Swartwout  was  thus  drawing  from  his  deposites,  he  was  not  also  contin- 
ually replacing  sums  on  deposite  from  his  individual  resources  or  specu- 
lations ;  and  if  the  whole  extent  of  such  deficits  was  or  was  not  conceal- 
ed by  carrying  into  his  weekly  bank  deposites  cash  returns  to  the  Treas- 
ury Department  of  one  week,  such  sums  as  were  received  by  liini  on  the 
Saturday  of  the  preceding  week,  and  which  we^e  not  returned  in  the  cash 
account  of  such  preceding  week  ? 

v^nsiuer.  I  have  recollection  of  Mr.  Swartwout  having  replaced  moneys 
drawn  out  by  him  on  several  occasions.  The  amounts  which  he  had  in 
bank  from  deposites  for  duties,  together  with  the  receipts  for  bounds  due 
on  Saturday  and  Monday,  gave  him  am})le  funds  to  meet  his  drafts,  over 
and  above  the  balance  due  to  Government. 

Question  21.  Without  the  aid  of  such  reserved  Saturday  collections, 
and  in  the  way  explained  in  your  last  answer,  would  or  would  not  the 
deficit  from  the  bank  funds  of  his  office  have  appeared  most  manifest  on 
his  weekly  returns  ?  And  was  the  ultimate  effect  of  such  a  system  of  op- 
crating,  any  more  than  to  cast  upon  his  last  and  final  weekly  return  the 
aggregate  of  all  previous  withdrawals  from  his  deposites,  so  far  as  the 
same  had  not  been  offset  by  his  replacing  them  from  his  own  or  other 
funds  ? 

Answer.  It  would  have  been  impossible  for  Mr.  Swartwout  to  have 
made  his  weekly  transfer  without  the  aid  of  the  collection  of  bonds  of 
Saturday  and  Monday,  and  moneys  for  duties  on  goods  not  ascertained. 
The  ultimate  effect  of  such  a  system  was  to  cast  the  whole  balance  due 
upon  his  final  weekly  return. 

From  the  preceding  testimony,  the  committee  report  as  established  facts: 
1st.  That  all  moneys  received  by  Mr.  Swartwout,  as  collector,  prior  to 


Rep.  No.  313.  27 

1S37,  are  regularly  accounted  for  by  bim  in  liis  quarterly  returns  to  the 
Treasury  Department. 

2d.  That  so  much  of  all  moneys  received  by  Mr.  Swartwout  prior  to 
1837,  and  accounted  for  to  the  Treasury  Department  in  his  quarterly  re- 
turns, as  were  not  paid  by  liim  into  the  Treasury,  were  retained  by  him 
mider  the  tacit  acquiescence  of  the  accounting  officers  of  the  Treasury ; 
and  were  reg,ularly  carried  forward,  debited  to  himself,  i-n  the  balance  of 
each  subsequent  quarterly  account  rendered  by  him  to  the  Treasury  De- 
partment, to  the  close  of  his  term  of  office. 

3d.  That  his  omission  to  carry  a  debit  to  himself,  of  any  of  the  moneys 
received  by  him  from  the  Treasury,  or  from  other  sources,  prior  to  1837, 
to  the  class  of  accounts  kept  onlj'-  at  the  custom-house,  tailed  his  cash  ac- 
counts, and  liis  carrying  a  debit  to  himself  of  any  such  items  to  any  other 
class  of  accounts  kept  only  at  the  custoni-hoiise,  c:A\edi  suspsnse  and  un- 
settled accounts,  or  by  any  other  name,  could  not  operate  as  a  conceal- 
ment, innocent  or  fraudulent,  from  the  Treasury  Department,  of  the  true 
cash  balance  in  his  hands — 

1.  Because,  neither  his  cash  account,  nor  his  suspense  and  unsettled 
account,  nor  any  other  subordinate  account  kept  at  the  custom-house,  was 
ever  exhibited  to,  or  formed  the  basis  of  any  quarterly  settlement  made 
by  him  with,  the  accounting  officers  of  the  Treasury. 

2.  Because,  in  his  quarterly  accounts  settled  at  the  Treasury  Depart- 
ment, the  aggregate  and  true  balance  of  all  his  subordinate  accounts  kept 
at  the  custom-house,  including  both  his  cash  account  and  suspense  ac- 
counts, was  uniformly,  prior  to  1837,  carried  into  his  quarterly  account, 
under  the  item  of -'cash,  and  unsettled  accounts.^' 

4th.  That  the  defalcations  of  Mr.  Swartwout,  by  means  of  fraud  and 
false  returns,  commenced  in  1837,  and  not  sooner,  and  have  existed  since 
that  period ;  and  the  defalcations  thus  occurring,  added  to  the  moneys 
previously  retained  by  him,  according  to  his  returns  to  the  Treasury 
Department,  and  by  the  silent  acquiescence  of  the  officers  of  that  Depart- 
ment, until  the  close  of  his  term  of  office,  constitute  the  aggregate  of  his 
defalcations  at  the  present  period. 

3.    THE    CAUSES    OF    MR.   SWARTVVOUt's    DEFALCATIONS. 

This  branch  of  the  subject  will  be  considered  in  the  following  order: 

1st.  The  irresponsibilit}'-  of  Mr.  Swartwout  in  pecuniary  character  at 
the  time  of  his  appointment  to  office. 

2d.  Culpable  disregard  of  law,  and  neglect  of  official  duty,  by  the  late 
naval  officer  at  New  York. 

3d.  Culpable  disregard  of  law,  and  neglect  of  official  duty,  by  the  First 
Auditor  of  the  Treasury. 

4th.  Culpable  disregard  of  law,  and  neglect  of  official  duty,  by  the  late 
and  present  First  Comptrollers  of  the  Treasury. 

5th.  The  discontinuance  of  the  use  of  banks  as  depositories  of  the  pub- 
lic moneys,  and  permitting  the  same  to  accumulate  in  the  hands  of  Mr. 
Swartwout. 

6th.  The  negligence  and  foilure  of  the  Secretary  of  the  Treasury  to 
discharge  his  duty  as  the  head  of  the  Treasury  Depariment,  charged  by 
law  with  the  superintendence  of  the  collection  of  the  revenue. 


28  Rep.  No.  313. 

Cause  1. — The  irresponsibility  of  Mr.  Swartwout,  in  pecuniary  charac- 
ter, at  the  time  of  his  appoint uient  to  office. 

There  is  obvious  jeopard j^  of  the  public  interests  whei^^ever  appoint- 
ments to  offices  of  high  pecuniary  obligation  are  conferred  by  the  Exec- 
Qtire  upon  individuals  who  are  notoriously  wanting  in  reputation  for 
jesponsibility  in  financial  matters. 

There  probably  cannot,  in  human  relations,  be  brought  to  bear  upon 
human  frailty  and  cupidity  stronger  temptations  to  err  from  duty  and  rec- 
idtude,  than  spring  from  the  possession  and  control  (which  must,  from 
their  nature,  be  somewhat  exclusive)  by  individual  office-holders,  of  large 
and  extraordinary  masses  of  Governn:ent  money.  Unless  the  checks  insti- 
tuted to  counteract  such  temptations  are  numerous,  and  exerted  with 
sleepless  vigilance  at  every  point,  the  moral  restraint  against  mal-con- 
duct  of  officers  thus  intrusted  with  large  pecuniary  means,  which,  at 
times,  may  seem  not  even  to  be  exerted  by  Government,  is  very  apt  to 
relapse  into  a  mere  lurking  apprehension  of  early  detection.  The  conse- 
quence is,  as  soon  as  this  apprehension  is  overcome  by  any  known  rcmiss- 
aess  on  the  part  of  those  to  whom  they  are  immediately  accountable,  or 
discovers  a  device  by  which  to  elude  tl-e  vigilance  of  their  superiors  in 
office,  they  are  prepared  to  regard  and  treat  the  public  revenue  in  their 
hands  rather  "  as  a  means  of  promoting  individual  interests,  than  as  an 
Instrument  created  solely  for  the  service  of  the  people." 

It  was  v/ell  remarked  by  the  "  illustrious  predecessor"  of  the  present 
iiational  Er.cculive,  in  the  earlier,  and,  perhaps,  purer  days  of  his  admin- 
istra^n:!  of  the  Federal  Government,  that  the  possession  of  oflicial  station, 
alone,  exerts  a  corrupting  influence  upon  the  generality  of  men.  "  There 
are,  perhaps,"  says  his  first  message  to  Congress,  -few  men  who  can, 
for  any  great  length  of  time,  enjoy  office  and  power,  without  being  more  or 
•ess  under  the  influence  of  feelings  unfavorable  to  the  faithful  discharge 
of  their  public  duties.  Their  integrity  may  be  proof  against  improper 
considerations  immediately  addressed  to  themselves  ;  but  they  are  apt  to 
acquire  a  habit  of  looking  with  indifference  upon  the  public  interests,  and 
of  tolerating  conduct  from  which  an  unpractised  man  would  revolt." 

If  naked  official  station  be  thus  pregnant  with  temptations  unfavorable 
to  the  faithful  discharge  of  public  duties,  how  alarmingly  accumulative 
these  temptations  become  when  are  superadded  to  official  station  the 
temptations  which  flow  from  tlie  collection,  keeping,  and  disbursement  of 
vast' sums  of  money,  drawn  directly  from,  yet,  for  the  most  part,  always 
kept  and  used  beyond  the  sight  of,  the  people. 

If  there  be  any  thing  that^can  add  to  the  evils  of  the  known  tempta- 
tions inseparable  fromthe  power  of  official  station  and  public  revenue 
combined  to  demoralize  the  government  of  a  people,  to  enipovcrish  their 
public  treasury,  and  to  infuse  into  them  a  lust  for  "the  spoils"  of  politi- 
cal servility  and  cunning  in  preference  to  the  rewards  attendant  upon 
the  pursuits  of  honest  and  honorable  industry,  it  is  to  be  found  in  the  ap- 
pointment to  oflicial  stations  of  high  pecuniary  obligations,  of  men  noto- 
liouf^ly  irrcn;ponsible,  and  whose  lives  have  proved  them  incompetent  to 
save  for  themselves  ;  as  sure  as  effect  must.fullov/  cause,  so  sure  will  the 
temptations  already  s])oken  of  prove  but  too  successful  in  the  pillage  of 
the  public  treasury,  when  brought  to  bear,  l)y  Executive  patronage,  upon 
?':v  '-  r;i,  or  cUiss  of  men,  already  excited  by  the  habitual  indulgence  of 


/ 


Rep.  No.  313.  29 

venturesome  speculations,  and  by  the  alternate  hopes  and  disappointments, 
successes  and  embarrassments,  incident  to  such  speculations.  Of  this  class 
of  men,  and  such  a  man,  was  Mr.  Swartwout,  in  reputation  and  in  fact, 
both  at  the  time  of  his  original  appointment  to  the  coUectorship,  in  18.29^ 
and  of  his  re-appointment,  in  1S34.  He  was  wholly  irresponsible  in  pe- 
cuniary reputation,  notoriously  prone  to  hazardous  speculations,  deeply 
embarrassed  from  them,  and  always  in  want  of  funds.  The  committeej 
therefore,  regard  this  as  one  of  the  primary  causes  of  Mr.  Swartwout's 
defalcations,  and  of  the  consequent  loss  of  the  public  money  which  was 
intrusted  to  his  collection  and  keephig.  In  confirmation  of  this  view,  the 
subjoined  examination  and  testimony  of  witnesses  are  adduced  : 

Joseph  L.  Joseph  was  sworn  as  a  witness. 

Examined  hy  Mr.  Owens. 

Question  1.  Say,  if  you  were  acquainted  with  Mr.  Swartwout  wheE. 
collector  of  the  port  of  New  York,  whether  he  was,  during  his  official 
life,  a  purchaser  and  speculator  in  the  stocks?  If  yea,  state  the  difierent 
kinds  in  which  he  speculated,  and  the  amount  of  those  speculations. 

Answer.  I  am  well  acquainted  with  Mr.  Swartwout,  and  knew  him  as 
collector  of  the  port  of  New  York.  I  knew  he  was  frequently  engaged 
in  very  large  speculations  in  stock,  from  personal  knowledge,  and  from, 
rumor.  He  speculated  in  Long  Island  railroad  shares,  Stonington  railroad 
shares,  Harlem  railroad  shares,  Morris  canal  stock,  and  others,  probably, 
of  which  I  am  not  aware  or  do  not  now  recollect.  What  the  general  amount 
of  his  speculation,  I  do  not  know;  but  I  considered  him  always  a  large 
operator. 

Question  2.  Were  you  or  your  house  his  agent  or  brokers  in  these 
transactions,  or  a  portion  of  them  ?  If  yea,  state  the  amounts  of  those 
speculations  in  v/hich  you  had  personal  agency  ;  and  whether  they  were 
speculations  of  Swartwout  alone,  or  were  other  persons  interested  in 
them;  and  who  were  those  persons. 

Answer.  We  v/ere  his  brokers  in  some  particular  stock  transactions,  in 
the  purchase  of  Delaware  and  Hudson  shares,  Stonington  railroad  shares, 
Long  Island  railroad,  and  probably  some  others,  which  at  this  moment  I 
do  not  remember.  At  the  period  of  our  stoppage,  we  held  for  him  over 
a  hundred  tliousand  dollars  worth  of  stocks,  which  had  greatly  depre- 
ciated from  the  cost  price,  and  which  he  previously  had  begged  us  to  hold 
until  there  should  be  a  change  of  times.  They  were  for  Swartwout  alone, 
and  probably  reached  at  one  period  with  us  to  two  hundred  thousand 
dollars. 

Question  3.  AYere  these  speculations  of  which  you  speak,  or  a  portion. 
of  them,  fortunate  or  adverse  ?  If  fortunate,  state  the  amount  of  profits 
made  on, them;  if  adverse,  state  the  amount  of  loss  sustained. 

Answer.  We  once  paid  Mr.  Swartwout  some  seventy  or  eighty  thou- 
sand dollars  profit,  made  on  Morris  canal  stock.  I  do  not  remember  of  his 
ever  paying  our  house  over  two  or  three  thousand  dollars  of  loss.  His 
last  speculations  resulted  in  a  loss,  and  he  was  unable  to  pay,  and  bor- 
rowed some  money  for  us  with  the  view  of  aiding  us  to  bear  up  against 
these  differences,  actually  lost,  and  the  stocks  we  held,  which  we  did  not 
sell.     The  lo-ss  was  over  twenty  thousand  dollars. 

Question  4.  Do  you  know  of  your  own  knowledge,  or  from  the  in- 
formation of  Mr.  Swartwout,  the  amount  of  loss  or  gain  upon  other  specii- 


30  Rep.  No.  313. 

lations  in  stocks,  in  which  3^011  had  no  personal  agency?    State  the  same 
as  accnratcly  as  you  can. 

^inswer.  I  do  not  know  of  his  other  stock  operations,  except  that  ru- 
mor had  frequently  declared  his  having  made  and  lost  alternately. 
Stephen  Whitney  was  sworn  as  a  witness. 

Examined  by  Mr.  Owens,  " 

Question  1.  Were  you  acquainted  with  Mr.  Swart wout  during  the  time 
he  was  collector?  If  yea,  state  if  he  was  engaged  in  speculations  of  stocks 
during  that  period,  and  state  the  kinds  of  stocks. 

Answer.  I  was  acquainted  with  Mr.  Swartwout  during  the  time  he 
was  collector  of  the  port  of  Ne\v  York;  have  understood  he  was  engaged 
in  dealing  in  stock,  but  of  what  kind  and  to  what  extent  I  am  not  ac- 
quainted. 

Question  2.  Are  you  a  director  in  the  Morris  Canal  Company?  Was 
Mr.  Swartwout  a  director  in  the  same?  Had  he  stock  in  the  company,  and 
what  amount?  Was  he  not  in  the  liabit  of  selling  and  reselling  that  stock; 
and  Avere  his  speculations  fortunate  or  adverse,  and  to  what  amount  ? 

^nstcer.  I  am  a  director  of  the  Morris  Canal  and  Banking  Company, 
but  have  no  knowledge  of  his  (Mr.  Swartwout's)  transactions  with  that 
company. 

John  IVard  was  sworn  as  a  witness.  Mr.  Ward,  who  had  been  sum- 
moned at  the  instance  of  Mr.  Owens,  was 

Examined  by  Mr.  Curtis. 

Question  I.  Were  you  acquainted  with  Samuel  Swartwout  before  and 
during  the  time  he  was  collector  of  the  port  of  New  York? 

Ansiver.  Yes. 

Question  2.  Do  you  know  any  thing  of  the  causes  and  extent  of  Mr. 
Swartwout's  defalcation  as  collector,  the  length  of  time  it  existed,  or  of 
any  material  fact  connected  therewith? 

Answer.  I  do  not. 

Question  3.  What  is  your  occupation  ? 

Jinsiver.  Stock  and  exchange  broker. 

Question  4.  Have  you  been  concerned  as  such  broker  in  any  opera- 
tions or  speculations  in  stocks  on  account  of  Mr.  Swartwout? 

Answer.  I  Ipave  bought  and  sold  stock  on  his  account. 

Question  5.  Have  you  ever  bought  and  sold  stock  on  joint  account  of 
yourself  and  said  Swartwout? 

Ansiocr.  No. 

Question  G.  To  what  amount  have  you  bought  and  sold  stocks  for  said 
Swartwout?  Can  you  furnish  a  copy  of  your  accounts  with  him? 

Answer.  I  should  tliink  not  more  than  §100,000;  we  can  furnish  a 
statement  in  an  account  of  purchase  and  sale  of  Morris  canal  stock  ;  there 
appears  a  loss  to  liiin  of  between  five  and  six  hundred  dollars. 

Question  7.  In  any  other  and  all  other  stocks  in  which  you  have  acted 
as  his  broker,  was  (here  any  considerable  loss  to  said  Swartwout? 

Answer.  To  the  best  of  my  recollection,  he  did  not  lose  money  in  his 
stock  operations  made  tlirough  our  agency. 

Alexander  Hamilton  was  sworn  as  a  witness. 
Examined  by  Mr.  Owetis. 

Question  1.  Were  you  acquainted  with  Mr.  Swartwout  during  the  time 


Rep.  No.  313.  31 

he  was  the  collector  of  New  York  ?  Have  you  any  knowledge  of  the 
mode  and  manner  of  conducting  his  business  in  the  custom-house? 

Jinswer.  I  was  well  acquainted  with  Mr.  Swartwout  before  and  during 
the  time  he  was  collector,  but  am  entirely  ignorant  of  the  manner  in 
which  his  official  duties  were  performed. 

Question  3.  Was  Mr.  Swartwont,  during  the  time  he  was  collector,  in 
the  habit  of  speculating  in  stocks,  in  New  York  or  elsewhere?  If  yea, 
state  the  nature  of  the  slocks,  who  were  his  brokers,  and  whother  his  specu- 
lations were  confined  to  himself  alone,  or  were  other  persons  engnged  with 
him,  and  who  were  those  persons  ? 

Answer.  Mr.  Swartwout  was  in  the  constant  habit  of  speculating  in. 
stocks,  and  with  several  brokers.  The  Wards  and  Josephs  are  alone 
positively  known  to  me  as  such  ;  but  I  do  not  know  whether  his  specu- 
lations were  jointly  with  others. 

Question  3.  Were  you  in  famihar  and  daily  intercourse  with  Swart- 
wout? Do  you  know  of  your  own  knowledge,  or  have  you  heard  from 
him,  the  results  of  his  speculations  either  in  stocks  or  real  estate,  whether 
the  same  were  fortunate  or  adverse,  and  the  amount  of  money  gained  or 
lost  in  them  ? 

Answer.  I  was  in  the  constant  habit  of  free  converse  with  Mr.  Swart- 
wout, and,  although  I  was  under  the  impression  that  his  operations  in 
stocks  and  real  estate  were  fortunate,  I  have  no  positive  knowledge  on  the 
subject,  with  the  exception  of  having  been  informed  by  the  Josephs  that 
they  at  one  time  paid  Swartwout  a  balance  arising  out  of  profits  from  the 
purchase  and  sale  of  Morris  canal  stock,  of  $80,000;  but,  at  the  time  of 
the  departure  of  Mr.  Swartwout,  they  related  to  me  that  he  v/as  indebted 
to  them  ^40,000. 

Examined  by  Mr.  Dawson. 

Qvestioti  5.  What  was  the  reputation  of  Samuel  Swartwout,  at  the 
time  of  his  appointment,  in  the  year  1829,  for  pecuniary  responsibility  ? 

Ansiver.  Without  any ;  on  the  contrary,  he  was  generally  understood 
to  be  much  involved  in  debt. 

Russell  H.  Kevins  sworn  as  a  witness.  Mr.  Nevins,  who  had  been 
summoned  at  the  instance  of  Mr.  Owens,  was 

Examined  by  Mr.  Curtis. 

Question  1.  Did  you  know  Samuel  Swartwout  while  he  held  the  office 
of  collector  of  New  York  ? 

Ansiver.  Yes. 

Questioji  2.  What  is  your  occupation  ? 

Answer.  Stock  and  exchange  broker. 

Question  3.  Have  you  at  any  time,  and  to  what  extent,  acted  as  broker 
or  agent  of  said  Swartwout,  in  the  purchase  and  sale  of  stocks? 

Answer.  The  transactions  of  our  house  with  Mr.  Swartwout  have 
been  but  few,  and  I  believe  only  in  a  single  instance  was  there  a  purchase 
of  stock  for  his  account.     This  to  the  amount  of  about  ^25,000. 

There  was  a  transaction  of  a  larger  amount  with  another  person,  with 
whom  it  was  understood  Mr.  Swartwout  was  a  party  concerned. 

It  has  not  yet  been  entirely  closed,  and,  at  the  present  prices  of  the  stock, 
a  very  considerable  loss  would  be  the  result.     Mr.  Swartwout  never  paid 


32  Rep.  No.  313. 

any  money  on  account  of  the  above  transaction.     I  never  knew  him  to 
have  money,  but  he  always  wanted  to  borrow. 

Examined  by  Mr.  Owens. 

Qnesiion  4.  You  say  Mr.  Swart wout  was  engaged  with  others  in  a 
certain  speculation  of  stocks:  will  3'ou  name  the  persons  so  interested 
with  him,  and  the  amount  of  the  speculations? 

^nsiver.  The  name  of  the  person  interested  with  Mr.  Swartwout  I  do 
not  feel  at  liberty  to  mention  ;  he  was  the  one  on  whom  I  placed  my  sole 
reliance,  and  was  of  undoubted  responsibility.  Mr.  Swartwout  I  did  not 
originally  suppose  to  be  concerned  in  the  transaction.  The  other  person 
was  not  in  the  custom-house,  and  held  no  office  under  the  Government. 

The  amount  of  stock  purchased  was,  to  the  best  of  my  recollection, 
about  fifty  thousand  dollars.  Swartwout  never  paid  any  thing  on  account 
of  the  stock. 

Examined  by  Mi\  Wise. 

Question  8.  What  was  Mr.  Swartwout's  general  character  as  a  man  of 
pecuniary  responsibility,  when  he  was  appointed,  in  1S29 ;  and  afterwards, 
when  he  was  reappointed, in  1S34? 

^^nsiver.  It  was  generally  considered  not  to  be  good.  At  the  time  of 
his  first  appointment,  it  was  decidedly  bad. 

Question  9.  Was  it  not  notorious  in  New  York,  during  the  whole  time 
Mr.  Swartwout  was  in  office,  that  he  was  speculating  in  various  modes, 
upon  an  extensive  and  hazardous  scale  ? 

^^nswer.  I  think  it  was  generally  believed  in  the  neighborhood  of 
Wall  street  that  Mr.  Swartwout  was  engaged  in  many  and  extensive 
speculations. 

Jmnes  B.  Murray  was  examined  as  a  witness. 

Examined  by  Mr.  Owens. 

Question  1.  Are  you  a  resident  of  New  York,  and  what  is  your  busi- 
ness or  occupation  ?  Were  you  a  director  or  president  of  the  Morris 
Canal  Company,  and  how  long  have  you  been  so? 

^nsiver.  I  am  a  resident  of  New  York  ;  by  profession  a  merchant;  was 
elected  a  director  of  the  Morris  Canal  Company  in  February,  1834,  and, 
with  the  exception  of  a  short  interval,  have  continued  so  until  the  present 
time.  I  was  president  of  the  Morris  Canal  Company,  and  resigned  that 
situation  when  Louis  McLane,  Esq.,  \vas  elected. 

Question  2.  Do  you,  as  director  of  the  Morris  Canal  Company,  know, 
or  from  conversations  with  Swartwout,  the  amount  of  stock  in  that  com- 
pany in  which  he  (Swartwout)  spccukitcd  ;  and  the  amonnt  of  loss  or 
gain  ? 

Answer.  I  remember  Mr.  Swartwout  liaving  stated  to  me,  at  or  about 
the  period  of  my  retiring  from  the  presidency  of  the  ISIorris  Canal  Com- 
pany, that  he  had  cleared  a  large  sum  of  money  in  that  slock  ;  and  I 
think  he  mentioned  the  amount  as  being  i570,000.  But  what  were  his 
subsocpient  transactions  in  that  stock  I  do  not  know ;  nor  have  I  any  par- 
ticular knowledge  at  any  time,  except  as  above  stated. 

Question  3.  Were  you  acquainted  with  Mr.  Swartwout  during  the 


Eep.  No.  313.  33 

time  he  v/as  collector  of  New  York  ?  Was  he  engaged  in  stock  specula- 
tions, and  to  what  amount  ?  State  tlie  stocks  he  so  speculated  hi,  and 
whether  they  were  fortunate  or  adverse ;  and  the  amount  of  loss  or  gain, 
Answer.  I  was  acquainted  with  Mr.  Swartwout  during  the  whole 
period  of  his  being  collector  of  this  port,  and  generally  understood  that 
he  was  largely  engaged  in  stock  speculations ;  bat  to  what  extent,  or  what 
were  the  results,  1  am  unable  to  say. 

From  the  preceding  testimony,  the  committee  report  as  established  facts: 

1st.  That,  at  the  time  of  Mr.  Swartwout's  appointment  and  of  his  re- 
appointment to  office,  he  was  wholly  irresponsible  in  pecuniary  reputa- 
tion, and  was  involved  in  debt. 

2d.  That  at  the  time  of  his  appointment  and  of  his  reappointment,  and 
for  the  whole  period  he  was  in  office,  he  was  notorionsly  engaged  in 
large  and  hazardous  speculations,  and  deeply  embarrassed  by  them. 

3d.  That  his  pecuniary  irresponsibility,  and  consequent  involvements  by 
hazardous  speculations,  constitute  one  of  the  primary  causes  of  his  defal- 
cations to  the  Government. 

Cause  2. —  Culpable,  disregard  of  law,  and  neglect  of  official  duty,  bt/ 
the  late  naval  officer  at  New  York. 

The  naval  officer  is  designed  to  be  a  complete  check  upon  all  the  ac- 
counts of  the  collector  ;  and  existing  laws  are,  and  have  been  since  1799, 
amply  competent  to  render  it  so,  if  efficiently  administered. 

The  duty  imposed  upon  naval  officers  by  the  21st  section  of  the  act  to 
regulate  the  collection  of  duties  on  imports  and  tonnage,  passed  March  2, 
1799,  is  as  follows  : 

"  The  naval  officer  shall  receive  copies  of  all  manifests  and  entries,  and 
shall,  together  with  the  collector,  estimate  the  duties  on  all  goods,  wares, 
and  merchandise  subject  to  duty,  (and  no  duties  shall  be  received  without 
such  estimates,)  and  shall  keep  a  separate  record  thereof;  and  shall  coun- 
tersign all  permits,  clearances,  certificates,  debentures,  and  other  docu- 
ments to  be  granted  by  the  collector  ;  he  shall  also  exa^nine  the  collector's, 
rbstracts  of  duties,  and  other  accounts  of  keceipts,  bonds,  and  expen- 
ditures, and,  if  found  right,  he  shall  certify  the  same.'"' 

By  the  report  of  the  Secretary  of  the  Treasury  to  the  President,  and  by 
the  latter  commimicated  to  Congress,  (House  doc.  13,  p.  6,)  it  is  repre- 
sented that  a  circular,  issued  by  the  Comptroller  of  the  Treasury  in  1821, 
had  tended  to  remove  the  check  on  the  collector,  provided  in  the  above- 
enactment  of  law, ''  in  some  particulars  very  essential.^'  The  apolo- 
getic language  of  the  Secretary  is  : 

"  It  appears  that  the  naval  officer  at  New  York,  if  able  to  perform  the 
task,  has  not  for  a  long  period,  or  at  least  during  the  seventeen  years  tliati 
have  elapsed  since  a  circular  issued  by  the  Comptroller  in  1821,  considered 
it  his  duty  to  certify  to  the  expenditures  and  accounts  generally,  but  only 
to  certain  portions  of  them,  and  to  the  correct  assessment  of  the  duties. 

"  That  circular,  unfortunately,  tended  to  remove  a  check  on  the  col- 
lector, in  some  particulars  very  essential,  and  has  been  repealed  by  the 
present  Comptroller."     (Ho.  doc.  13,  pp.  6,  7.) 

The  committee,  finding  the  accounts  and  returns  of  Mr.  Swartwout, 
made  quarterly  to  the  Treasury,  to  have  been  correct  in  every  particular 


34  Rep.  No.  313. 

prior  to  1S37,  whether  checked  properly  l)y  the  records  and  vigilance  of 
the  naval  oliicer  or  not,  and  that  the  only  accounts  containing  fraudulent 
or  deceptive  omissions  were  those  rendered  tor  1837,  and  thiit  such  omis- 
sions were  conlined  to  the  bond  account,  on  which  bonds  had  become 
payable  and  had  been  paid  to  Mr.  Swartwout,  the  committee  were  led 
to  examine  how  far  the  circular  of  1821,  alluded  to  as  above  by  the  Sec- 
retary of  the  Treasury,  did  in  fact  remove  from  this  class  of  the  collector's 
accounts  the  check  upon  them  provided  by  law  in  the  duties  of  the  naval 
olhcer,  and  how  far,  in  truth,  said  circular  furnished  any  apology  for  the 
naval  oflicerlbr  any  neglect  of  those  accounts  on  his  part. 

On  recurring  to  the  said  circular  of  1S21,  disclosed  by  the  Secretary  in 
House  document  of  the  present  session  numbered  54,  in  answer  to  a 
special  call  of  the  House,  the  committee  find  that,  instead  of  being  de- 
signed or  tending  to  remove  any  check  from  the  collector  which  had 
been  previously  exercised  by  the  naval  oflicer  under  the  law  of  1799,  it 
avowedly  enjoins  upon  them  the  exercise  of  all  the  checks  contemplated 
by  that  law,  with  a  single  exception  ;  and  the  previous  neglect  of  them 
by  naval  othcers,  and  not  a  discontinuance  of  any  of  them,  is  set  forth 
as  the  occasion  of  alluding  to  them  in  the  circular.  The  following  is  its 
language : 

"  It  is  deemed  proper,  at  this  time,  to  notice  another  subject,  on  ivhich 
instriiclions  appear  to  be  necessary. 

"  Until  lately,  it  has  been  the  practice  of  the  naval  officers,  generally, 
io  certify  no  other  accounts  of  the  collectors  than  the  abstracts  of  duties 
of  merchandise  iinported,  and  the  tonnage  abstracts. 

"  These  are  the  only  documents  which  were  required  to  be  so  certified 
under  the  laws  anterior  to  that  of  the  2d  March,  1799,  in  the  21st  sec- 
tion of  which  a  dilTerent  regulation  is  made  on  the  subject ;  but  as  no 
instructions  can  be  found  relative  to  this  regulation,  which,  it  appears, 
has  hitherto  not  been  observed,  it  is  presumed  that  the  alteration  alluded 
to  was  overlooked. 

"By  the  section  referred  to,  the  naval  officers  are  required  to  examine, 
not  only  the  collectors'  abstracts  of  duties,  but  '  other  accounts  of  re- 
ceipts, bonds,  and  expenditures ;  and,  if  found  right,  to  certify  the  same.' 

"As  all  the  accounts  of  disbursemeyits  made  by  the  collectors  are  to  be 
supported  by  vouchers,  it  is  not  considered  necessary  that  such  accounts, 
except  the  abstracts  of  duties  refunded,  should  be  examined  and  certified 
by  the  naval  officers. 

"The  documents  which  are  considered  to  require  that  formality  are  as 
follows,  viz  : 

"  1.  The  abstracts  of  duties  on  merchandise  and  tonnage. 

"  2.  The  abstracts  of  duties  on  passports  and  clearances. 

"  3.  The  abstracts  of  interest  received  on  bonds  which  are  not  paid  as 
they  become  due. 

"  4.  The  abstracts  of  marine  hospital  money  collected. 

"  5.    The  tiond  accounts. 

"  6.  The  abstracts  Of  duties  refunded. 

"To  enable  the  naval  officers  to  examine  and  certify  these  returns,  it 
will  be  necessary  that  they  should,  so  far,  keep  corres])onding  accounts 
with  the  collectors  of  the  cjistoms,  from  whom  the  forms  of  those  ac- 
counts can  be  obtained,  and  who,  I  feel  persuaded,  will  cheerfully  give 
their  co-operation  in  carrying  the  provisions  of  the  law  into  effect." 


Rep.  IS^o.  313.  35 

It  will  thus  be  seen  that,  while  it  was  not  designed,  and  could  not  have 
tended,  to  remove  any  check  whatever  on  the  collector,  in  any  particular 
very  essential,  (as  accounts  of  disbursofmcnts  require  vouchers  in  all 
cases,  the  naval  officer's  check  in  regard  to  tjiem  is  expressly  declared  by 
the  circular  as  "  nut  considc7-ecl  necessary, ^^)  that  circular  did  enjoin  upon 
naval  officers^  in  most  specific  terms,  the  exercise  of  every  essential  check 
upon  coUecto'ls  tiiat  the  law  of  1799  contemplated  and  provides;  and  it 
is  only  because  the  naval  officer  at  New  York  did  wholly  neglect  to  com- 
ply with  and  fulfil  the  instructions  contained  in  this  same  circular  of  1821, 
viz  :  to  ^^  keep  corresponding  accounts  with  the  collector  of  the  customs^' 
in  relation  to  bonds  taken  by  and  bonds  paid  to  him,  and  by  this  means 
to  make  the  thorough  examination,  independently  of  the  collector's  ac- 
counts, of  the  •'  bo)id  accounts"  returned  to  the  Treasury  Department  by 
Mr.  Swartwout,  and  not  because  of  any  check  removed  by  the  cir- 
cular of  1821,  that  Mr.  Swartwout  was  enabled  to  return  his  accounts 
for  all  the  four  quarters  of  the  year  1837,  falsely  and  fraudulently  omit- 
ting therein  the  many  hundred  thousands  of  dollars  in  which  he  has  be- 
come a  defaulter  for  that  year.  It  is  in  this  palpable  disregard  of  the 
positive  requirements  of  the  law  of  1799,  prescribing  the  duties  of  naval 
officers,  and  in  this  equally  palpable  disregard  of  the  positive  require- 
ments of  the  more  recent  circular  of  the  Comptroller  of  the  Treasury, 
dated  November  10,  1821,  and  in  the  negligence  of  records  and  want  of 
proper  vigilance  on  the  part  of  the  naval  officer  at  New  York,  from  the 
commencement  to  the  close  of  Mr.  Swartwout's  two  terms  of  service,  that 
is  found  by  the  committee  a  primary  cause  of  Mr.  Swartwout's  immense 
defalcations.  And  the  committee  feel  constrained  to  add,  from  a  sense  of 
duty  to  the  House  and  to  the  country,  that  the  attempted  apology  quoted 
above,  made  by  the  Secretary  of  the  Treasury  to  Congress  before  the  cir- 
cular of  1821  was  disclosed,  for  the  disregard  of  law,  of  Treasury  in- 
structions, and  of  plain  official  duties  by  the  late  naval  officer,  who  only  left 
that  office  to  take  another  public  office  of  no  less  respectability  under  the 
present  Executive,  is  wholly  vv^ithout  weight  and  without  foundation. 

If  it  were  true  that  the  class  of  accounts  returned  by  Mr.  Swartwout 
to  the  Treasury  prior  to  IS 37  involved  defalcations,  contrary  to  the 
opinion  of  the  conmiittee,  as  deduced  in  a  former  branch  of  this  report, 
then,  it  is  true  that  a  cause  of  those  defalcations,  excepting  those  in 
office  "expenses"  and  "forfeitures,"  is  in  like  manner  to  be  found  in  the 
same  culpable  negligence  of  the  naval  officer,  already  described,  in  not 
keeping  original  records  and  accounts  as  required  by  law,  as  also  by  the 
circular  of  1821,  corresponding  with  those  kept  by  the  collector  of  ^^  ton- 
nage duties'^  and  "  duties  refunded"  to  merchants. 

By  the  evidence  before  the  committee,  it  was  found  that  the  only  ac- 
count or  record,  of  the  whole  number  required  by  law  to  be  kept  by  him, 
that  was  kept  by  the  late  naval  officer  kt  New  York,  was  an  abstract  of 
duties  accruing,  furnishing  no  check  whatever  upon  any  account  of  the 
collector,  except  upon  his  computation  of  the  dutiable  sums  on  imports. 
Beyond  this,  which  is  comparatively  of  but  the  least  consequence  of  all 
checks,  if  standing  alone,  the  naval  officer  at  New  York  has  served  but 
as  a  useless  expense  to  the  Government,  adhering  to  empty  forms,  of  no 
efficacy  but  to  give  currency  to  anv  frauds  which  the  collector  might  im- 
body  in  his  accounts.  All  of  which  is  elucidated  and  substantiated  by 
the  following  examination  and  testimony  : 


36  Rep.  No.  313. 

Mr.  Flcyning,  auditor  of  the  custom-house. 

Examined  by  Mr.  Smith. 

Question  69.  By  a  comparison  at  the  naval  office,  at  the  port  of  New 
York,  of  the  collector's  quarterly  returns,  transmitted  to  that  office  for 
examination,  oj  bond s  paid  within  such  quarter,  with  the  records  in  said 
office  of  said  collector's  preceding  quarterly  returns  of  bonds  payable  in 
that  quarter,  is  not  the  naval  officer  enabled  at  once  to  detect  any  omis- 
sion, in  the  quarterly  returns  of  the  collector,  of  bonds  that  should  be  ac- 
counted for  as  paid,  or  as  having  come  to  maturity  and  extended  or  put 
in  suit  ? 

Jinswer.  The  naval  officer  was  not  enabled  to  delect  any  such  omission, 
from  the  fact  that  no  record  of  bonds  was  kept  in  that  office.  The  col- 
lector's proofs  were  submitted  to  the  naval  officer,  and  upon  their  evidence 
he  certified  the  bond  accounts  to  be  correct. 

Question  70.  What  character  of  proofs  do  you  allude  to  in  your  last  an- 
swer, as  having  been  in  usage  submitted  by  the  collector  to  the  naval 
officer,  to  enable  the  latter  to  test  the  correctness  of  the  collector's  accounts 
and  returns  ? 

Ansiver.  Those  proofs  are  the  accounts  as  made  up,  and  retained  in 
the  collector's  office,  exhibiting  the  same  aggregate  amounts  as  the  returns 
transmitted  to  the  Treasury. 

Question  71.  From  the  manner  in  which  the  duties  of  the  naval  office 
were  discharged  in  regard  to  Mr.  Swartwout's  accounts,  as  described  in 
your  two  last  answers,  did  or  did  not  that  cease  to  be  a  check  upon  the 
deficiencies  and  intentional  omissions  of  those  accounts  ? 

Answer.  The  naval  officer,  in  regard  to  the  bond  accounts,  did  not  form 
a  check  upon  the  collector. 

The  following  testimony  of  the  late  deputy  naval  officer,  and  now  a 
deputy  collector  at  New  York,  though  in  the  outset  evasive,  grew  at  length 
to  a  full  concession  of  the  truth. 

John  T.  Ferguson  was  sworn  as  a  witness. 

Examined  by  Mr.  Owens. 

Question  1.  Are  you  an  officer  in  the  custom-house, New  York?  How 
long  have  you  been  there,  and  what  are  the  duties  you  have  discharged  ? 

Jinswcr.  I  am.  My  connexion  with  the  custom-house  commenced  in 
May,  1829.  I  served  as  deputy  naval  officer  till  29th  of  March,  1838. 
Since  then,  with  the  omission  of  about  three  weeks,  have  been  principal 
deputy  under  Mr.  Collector  Hoyt. 

Question  2.  From  your  knowledge  of  the  manner  of  conducting  the 
business  of  the  naval  office  in  the  custom-house  at  New  York,  and  from 
your  connexion  with  it,  will  you  be  pleased  to  state  if  the  naval  officer 
acts  as  a  check  upon  the  collector;  whether  the  accounts  are  critically  ex- 
amined, or  if  the  examination  and  certifying  the  same  is  not  rather  a 
formal  than  an  actual  [examination  ;]  and  whether  such  has  not  been  the 
uniform  practice,  as  far  as  you  are  acquainted  with  the  performance  of 
the  duty,  by  the  naval  officer  ? 

*finswer.  In  answer  to  the  first  question,  I  have  to  answer,  most  as- 


Eep.  No.   3!  3.  37 

suredly,  and  for  many  years  been  generally  considered  and  proved  to  be 
a  check.  2d.  The  accounts  were  critically  examined,  and  I  do  sincerely 
think  it  by  no  means  a  formal  examination,  but  an  absolute  check.  3d. 
The  practice  pursued  during  the  ^crm  of  my  being  deputy  has  been  uni- 
form, and  the  only  practice  since  the  revenue  system. 

The  examination  of  John  T.  Fergusmi  was  resumed. 

Examined  hi/  Mr.  Smith. 

Question  4.  Was  any  record  or  register  kept  in  said  naval  office,  while 
you  were  in  it,  of  the  collector's  abstracts  of  duties,  and  other  accounts  of 
receipts,  bonds,  and  expenditures?  If  yea,  state  what  was  the  nature 
and  extent  of  such  record  or  register  in  form  and  substance } 

Jlnswer.  The  only  book  or  record  kept  in  the  naval  office  is  the  quar- 
terly abstract,  which  I  have  before  referred  to,  and  which  comprises  the 
whole  amount  collected  for  each  quarter,  including  bonds  taken  and  du- 
ties paid :  the  nature  of  this  record  being  supposed  to  be  heretofore  so 
satisfactory,  that  duplicates  of  other  accounts  were  not  thought  necessary. 

Question  5.  When  you  say  that  the  quarterly  record  abstract  kept  in 
the  naval  oiiice  includes  "bonds  taken,"  do  you  mean  to  convey  the  idea 
that  such  abstract  specifies  the  amount  of  each  bond  so  taken  by  the  col- 
lector, its  date,  the  names  of  the  parties  to  it,  and  when  it  became  payable  ? 
or  do  you  mean  that  it  only  contains  the  aggregate  amounts  of  dutiable 
goods,  that  have  been  entered  during  the  respective  quarters  of  the  year, 
and  the  duties  on  which  Avere  entitled  to  be  secured  by  bond  ? 
.  Jinsioer.  In  answer,  I  mean  it  only  accounts  for  the  aggregate  amount 
of  duties  accruing  during  each  quarter,  without  specifying  what  portions 
of  such  amounts  were  payable  or  were  paid  in  cash,  or  what  portions 
were  either  bonded  or  entitled  to  tlie  privilege  of  being  secured  by  bond. 

Question  6.  Has  any  change  taken  place  in  said  naval  office,  down  to 
the  present  day,  departing  from  the  mode  you  have  described  as  the  mode 
of  discharging  the  duties  of  said  naval  office  while  you  were  in  it  ? 

Answer.  No  change  had  taken  place  up  to  the  time  of  my  leaving  the 
office  ;  and  what  change  may  have  taken  place  since  I  left,  I  am  unable  to 
say. 

Question.  7.  By  the  abstract  you  iiave  described  as  kept  in  the  naval 
office,  or  by  any  other  papers  or  records  in  said  office,  is  the  naval  office 
enabled  to  ascertain  v/hat  the  actual  receipts  of  the  collector  have  been  in 
cash,  in  any  quarter,  for  duties,  or  other  means  as  collector  ? 

Answer.  To  my  khowledge,  the  abstract  does  not  show  the  amount  re- 
ceived quarterly  in  cash,  nor  does  any  other  account  kept  in  the  naval 
office. 

Question  S.  Were  any  of  the  "  accounts  of  receipts''^  by  the  collector 
of  cash,  or  of  bonds,  subjected  to  th£  naval  officer  for  his  examination  and 
certificate,  while  you  were  in  said  office  ?     If  yea,  what  class  of  accounts  ? 

Answer.  The  books  which  contain  ail  the  bonds  paid,  and  bonds  out- 
standing, have  been  always  examined,  within  my  knowledge,  at  the  naval 
office,  and  certified  by  the  naval  officer ;  but  no  duplicates  thereof  kept  in 
the  naval  office  at  the  time  of  examining  the  quarterly  account  of  the 
collector. 

Question  9.  What  class  of  the  collector's  accounts  of  cash  receipts 


^^?  S28S 


•  V;t 


38  Rep.  No.  313. 

were  examined  and  certified  by  the  naval  olliccr  while  you  were  in  said 
office  ?     Please  mention  each  class. 

Answer.  No  accounts  of  cash  receipts  of  the  collector  have,  to  my  knowl- 
edge, been  examined  in  the  naval  otiice,  separate  from  the  quarterly  ab- 
stract of  his  accounts. 

Question  10.  How  many  abstracts  of  different  accounts  of  the  collector 
Avere  examined  quarterly  in  the  naval  office,  while  you  were  there  ? 
Please  name  each. 

insurer.  The  American  and  foreign  abstracts  of  accounts  of  duty  arc 
the  only  ones  which  are  thoroughly  examined  by  separate  accounts  in  the 
naval  olFice. 

Question  11.  Did  the  abstract,  specified  in  your  last  answer,  in  any 
way  enable  the  naval  office  to  ascertain  what  amount  of  cash  had  been 
received  on -bonds  or  otherwise,  by  the  eollector,  during  any  quarter? 

,/inswer.  No. 

Quest ioti  12.  Had  the  naval  office  any  check  in  use,  while  you  were  in 
said  ollice,  by  which  any  defect  in  the  collector's  quarterly  accounts  of 
moneys  paid  or  payable,  in  any  quarter,  to  the  collector,  could  be  discov- 
ered or  found  out? 

Answer.  Not  by  any  means. 

Question  13.  Could  or  could  not  the  naval  otliccr,  by  the  books  of 
"bonds  paid"  and  "bonds  outstanding,"  mentioned  in  your  8th  answer, 
discover  whether  the  bonds  payable  had  comi^-  to  maturity  or  not  ? 

Answer.  He  could:  but  such  examination  was  not  in  the  power  of  the 
naval  officer,  as  there  was  no  means  furnished  by  which  such  examina- 
tion could  take  place. 

Question  14.  When  you  say,  in  your  Sth  answer,  that  '•'  the  books  which 
contain  all  the  bonds  paid  and  bonds  outstanding  have  been  always  ex- 
amined, within  your  knowledge,  in  tlie  naval  office,"  and  certified  by  the 
naval  ofiiccr.  why  was  it  not  in  the  power  of  the  naval  officer  to  discover 
vvdiether  the  bonds  payable  had  come  to  raatiu'ity  or  not  ? 

Answer.  At  the  time  of  my  being  deputy  in  the  naval  office,  no  account 
was  taken  of  the  bonds  given,  as  that  belonged  entirely  to  the  collector, 
as  he  possessed  the  power  of  collecting  the  amount  of  duty  accruing  upon 
each  importation,  either  by  compelling  the  merchant  to  pay  cash,  or  give 
his  bond  for  the  security  of  the  revenue. 

Question  15.  For  what  purpose  or  purposes  were  "  tlie  books  which 
contain  all  the  bonds  paid  and  bonds  outstanding,"  examined  in  the  naval 
office,  as  stated  in  your  Sth  answer  ? 

Answer.  To  conform,  as  far  as  in  our  power,  to  the  requisition  of  the 
law,  in  certifying  all  bonds  received  by  the  collector,  the  examination  of 
the  bond  abstracts,  furnished  the  Treasury  Department,  was  made  luith 
the  account  la-pt  l)i/  the  collector;  there  being  no  means  in  the  possession 
of  the  naval  oliicer  by  which  such  examination  could  otherwise  be  made. 

Question  16.  Do  you  mean  to  convey,  by  your  tbregoing  answers,  the 
idea  that  the  only  examination  made  in  the  naval  office,  while  you  were 
there,  of  the  accuracy  of  the  collector's  return  to  the  Treasury  Depart- 
ment of  "bonds  taken,  and  of  bonds  outstanding"  for  duties,  consisted  in 
comparing  .said  return,  as  furnished  by  him,t6v7A  his  own  books  of^''  bonds 
taken  and  bonds  outstanding,"  also  furnished  f)y  him  for  the  purpose  of 
such  examination  ? 

Answer.  1  answer,  yes ;  such  is  my  meaning. 


Rep.  No.  313.  S^ 

Question  17.  Did  the  naval  officer  examine  and  certify  any  of  the  col- 
lector's accounts  of  expenditure  while  3^ou  were  in  the  naval  office  ? 

^dnswer.  He  did  not,  to  my  knowledge. 

Question  IS.  From  the  manner  adopted  in  the  naval  office,  while  you 
were  there,  of  checking  and  testing  the  collector's  account  of  bonds  taken 
and  bonds  outstanding,  did  the  naval  officer  know,  or  could  lie  discover, 
whether  bonds  that  had  come  to  maturity  were  unpaid,  or,  if  paid,  were 
accounted  for  ?  and  did  the  examination  of  such  account  of  bonds  hold 
the  collector  to  explain  why  such  bonds  as  had  come  to  maturity,  without 
appearing  to  be  paid,  were  still  unpaid  ?  Was  such  explanation  ordina- 
rily required  bv  the  naval  officer  as  the  condition  or  prerequisite  of  his 
certifying  the  collector's  bond  account  ? 

Answer.  To  the  first  branch  of  the  above  interrogatory,  I  answer,  that 
the  naval  officer  could  not,  however,  discover  wiiether  bonds  that  had 
come  to  maturity  were  unpaid,  or  not;  or,  if  paid,  whether  they  were 
accounted  for,  or  not.  To  the  second  branch  of  the  interrogatory,  I  answer 
in  the  negative  ;  and  to  the  third  branch,  no  such  explanation  was  required. 

Question  19.  From  your  knowledge  of  the  manner  in  which  the  duties 
of  the  naval  office  were  discharged,  while  you  were  in  it,  and,  also,  from 
the  answers  you  have  already  given,  is  it  true,  or  not,  that  the  whole 
check  of  said  office  upon  the  collector's  accuracy  and  faithfulness  consisted 
entirely  and  solely  in  an  examination  of  the  correctness  of  the  collector's 
estimate  and  assessment  of  the  duties  required  by  law  upon  the  goods 
and  merchandise  entered  at  the  office  of  the  collector  ? 

Ansiver.  The  principal  and  sole  check  on  the  collector,  to  the  best  of 
my  knov/ledge,  consisted  in  the  examination  of  the  correctness  of  the  duty 
on  each  entry,  and  the  collector's  account  of  the  aggregate  amount  ao- 
cruing  quarterly  from  impost. 

George  W.  Cot  was  examined  as  a  witness. 

Examined  by  Mr  Smith. 

Question  1.  Are  you  the  son  of  the  present  naval  officer  of  the  port  of 
New  York  ;  and  are  you  deputy  naval  officer  of  said  port  ?  When  did 
your  father,  and  v/hen  did  you,  hkevvise,  enter  upon  the  duties  of  your 
respective  offices? 

Answer.  I  am  the  son  of  William  S.  Coe,  the  present  naval  officer  of 
New  York,  and  his  deputy.  I  think  my  father  went  into  his  present  of- 
fice on  the  29th  March,  1S3S  ;  and  myself,  as  deputy  naval  officer,  at  the 
same  time. 

Question  2.  Who  imniediately  preceded  your  father  in  the  naval  of- 
fice, and  who  preceded  yourself  in  the  deputy  naval  office  ? 

Answer.  Enos  T.  Throop  preceded  my  father  as  naval  officer,  and 
John  T.  Ferguson  myself,  as  deputy  to  Mr.  Throop. 

Question  3.  Has  any  change  in  the  system  of  executing  the  duties  of 
said  office,  from  that  pursued  by  Mr.  Throop,  been  adopted  since  Mr. 
Coe's  term  commenced  ?  Are  any  other  records  kept  in  said  office,  at 
this  time,  than  were  kept  formerly  in  said  office  ;  and  is  the  examination 
of  the  collector's  quarterly  abstracts  and  accounts  any  otlier,  so  far  as 
your  knowledge  extends,  than  the  examination  thereof  previously  made 
in  said  naval  office.  If  yea,  please  to  state  in  v/hat  such  change  and  dif- 
ferences consist. 


40  Rep.  No.  313. 

tdnswer.  There  have  been  several  cliangcs  in  executing  the  duties  of 
the  naval  oiliee,  since  the  appoiutiueiit  of  my  father  as  naval  ollicer;  and 
(here  are,  at  present,  other  records  kept  in  the  naval  office  ihan  those  in 
the  time  of  his  predecessor.  The  method  of  examining  the  quarterly  ab- 
stract is  the  same,  as  far  as  tlie  aggregate  amount  is  cor.cerned  ;  but 
changes  have  been  made  as  regards  ilie  examinations  of  the  other  ac- 
counts in  the  collector's  office.  The  accounts  of  the  collector  are  not  cer- 
tified until  an  examination  has  been  made  from  the  boolis  in  his  office. 

A  record  of  the  fees  of  tonnage  and  iiospital  money;  also,  the  fees 
arising  from  exports,  and  a  record  of  the  amount  of  duties  paid  under 
protest;  and,  also,  an  account  of  the  daily  transactions  of  collector's  of- 
fice, so  lUr  as  the  receij)ts  and  expenditures  are  concerned,  taken  from  the 
collector's  own  books. 

Question  4.  What  is  tlie  nature  of  each  quarterly  abstract,  and  of  each 
quarterly  account,  made  by  the  collector,  that  has  passed  under  examina- 
tion in  said  naval  oliice,  pursuant  to  the  existing  system  of  discharging  the 
duties  of  said  office  ?  Please  designate  each  by  name,  and  specify  the 
nature  of  its  contents. 

t.insive)\  The  quarterly  abstract  is  an  account  of  all  duties  received, 
and  that  of  the  collector  is  examined  in  the  naval  office  from  corre- 
sponding books  and  papers  kept  in  the  naval  office,  and  by  which  the  dif- 
ferent a.iiounts  are  examined,  so  far  a,s  relates  to  the  total  amount ;  but 
the  different  amounts  of  cash  and  bond  duties  are  not  specified  in  said 
quarterly  abstract;  and,  to  the  best  of  my  knowledge^  the  quarterly  ac- 
count of  United  States  hospital  money  for  the  last  quarter  was  ex- 
amined by  corresponding  accounts  kept  in  the  naval  office.  It  may  have 
been  done  previously ;  I  do  not  recollect  of  it,  or  other  accounts  which 
are  examined  by  similar  data. 

Question  5.  Previous  to  the  aJoption  of  the  changes  which  you  have 
enumerated,  in  the  system  of  conducting  the  duties  of  naval  officer,  was 
said  office  any  check  whatever  upon  any  class  of  errors,  or  deficits,  or  de- 
falcations which  might  take  place  in  the  collector's  abstracts  and  accounts, 
beyond  that  of  detecting  errors  in  the  computation  of  the  duties  payable 
on  goods  that  had  been  entered  ?  If  yea,  state  in  regard  to  what  other 
abstract  or  account  of  the  collector,  said  naval  oificer  was  a  check  upon 
the  collector's  proceedings  or  defalcations. 

Jinswer.  Previous  to  the  present  method  of  conducting  business  in  the 
naval  office,  I  do  not  consider  that  it  was  any  check  whatever  upon  tlie 
office  of  collector,  further  tlian  in  the  computation  of  the  amounts  of  duties 
received.  The  quarterly  abstract  stales  the  total  amount  of  duties  received 
by  the  collector  ;  but  wlieth(;r  received  by  bonds  or  cash,  the  naval  officer 
possesses  no  corresponding  accounts  to  determine  ;  but  he  must  be  guided 
by  the  books  of  die  collector,  so  far  as  the  receipts  of  cash  and  bonds  are 
concerned;  and  no  books  are  kept  in  the  naval  office  by  which  the  naval 
officer  can  tell  when  bonds  fall  due,  or  whether  or  not  said  bonds  are  paid 
at  maturity. 

Question  G.  Under  the  existing;  system  of  the  naval  office,  is  the  naval 
officer  enabled  to  determine,  either  what  amount  of  bonds  have  been 
taken  by  the  collector  for  duties,  in  any  quarter,  of  who  are  parties  to 
said  bonds,  or  the  dates  of  sucli  bonds,  or  when  they  are  payable,  or 
when  any  such  bonds  are  paid,  or  whether  tlie  collector  does  or  not  ac- 
count truly  for  bonds  that  have  been  paid  ? 


Eep.  No.  313.  41 

Answer.  In  answer  to  the  sixth  hiterrogatory,  I  have  to  state,  that  the 
naval  oflice,  under  its  existing  system,  is  not  enahled  either  to  determine 
Avhat  amount  of  bonds  have  been  taken  by  the  collector  for  duties,  in  any 
quarter,  or  who  are  the  parties  to  said  bonds,  or  the  dates  of  said  bonds, 
or  when  they  are  payable,  or  when  such  bonds  are  paid,  or  whetlier  the 
collector  does  or  does  not  account  truly  for  such  bonds. 

From  the  preceding  testimony,  tlie  committee  report  as  established 
facts : 

1.  That  the  late  naval  officer  at  the  port  of  New  York,  throughout  the 
term  of  his  service  from  1829  to  1838,  wholly  disregarded  the  require- 
ments of  the  law  prescribing  the  duties  of  his  otlice. 

2.  That  said  naval  officer,  for  the  same  period,  wholly  disregarded  the 
instructions  of  the  Comptroller  of  the  Treasury,  of  November  10,  1821. 

3.  That  said  naval  officer,  by  so  disregarding  the  requirements  of  law 
and  the  instructions  of  tlie  Treasury  Department,  culpably  neglected 
to  keep  the  accounts  and  records  appertaining  to  his  office,  and  tliereby 
rendered  the  office  nugatory  as  a  check  upon  the  accounts  of  the  collector. 

4.  That  if  the  duties  of  said  naval  officer,  as  authorized  and  directed  by 
existing  laws,  had  been  executed  with  proper  care  and  vigilance,  they 
would  have  rendered  it  impracticable  for  any  fraud  or  error  in  any  of  the 
accounts  of  the  collector  of  said  port  to  escape  immediate  detection. 

5.  That  the  culpable  disregard  of  tlie  plain  requirements  of  law  and  of 
Treasury  instructions  prescribing  the  duties  of  naval  officers,  by  said  naval 
officer,  and  his  continued  neglect  of  official  duty,  are  a  primary  cause  of 
the  immense  defalcations  of  the  late  collector  at  New  York. 

Cause  3. — Culpable  disregard  of  law  and  neglect  of  ofjUcial  duty,  by 
the  First  Andilor  of  the  Treasury. 

The  duties  of  the  First  Auditor  are  prescribed  in  the  5th  section  of  the 
act  of  September  2,  1789,  "to  establish  the  Treasury  Department,"  and 
the  act  of  iMarch  3,  1817,  '•  to  provide  for  the  prompt  settlement  of  public 
accounts,"  and  are  as  follows  : 

"  It  shall  be  the  duty  of  the  First  Auditor  to  receive  all  accounts  accru- 
ing in  thq  Treasury  Department,  and,  after  examination,  to  certify  the 
balance,  and  transmit  the  accounts,  with  the  vouchers  and  certificates,  to 
the  First  Comptroller,  for  his  decision  thereon." 

The  pres  nt  Auditor  came  into  his  office  November  1,  1836. 

The  accounts  of  Mr.  Swartwout  up  to  December  31,  1837,  appear  to 
have  been  regularly  transmitted  to  his  office,  pursuant  to  the  Treasury 
circular  of  March  1,  1830,  for  examination  and  settlement.  The  law  con- 
templates this  examination  to  be  a  thorough  check  upon  the  errors,  if 
any  exist,  of  both  the  collector  and  naval  officer.  And  here  all  Mr.  Swart- 
wout's  accounts,  except  his  bond  accounts,  appear  to  have  been  exam- 
ined, with  their  proper  vouchers,  and  certified  by  the  Auditor.  But  the 
Auditor's  certificate  covered  the  bond  accounts  as  well  as  the  other 
charges,  although  no-!;  in  fact  examined.  His  certificate,  vvath  the  vouch- 
ers, except  those  relating  to  bond  accounts,  was  transmitted  to  the  Fiist 
Com|itroller;  but  there  was  a  constant  neglect  to  transmit  the  vouchers 
of  the  bond  account  therewith,  as  positively  required  bylaw.  It  is  in 
4 


42  Eep.  No.  313. 

these  bond  accounts,  thus  neglected,  and  in  rcgaid  to  whicli  tlie  law  and 
Treasury  instructions  have  at  all  times  been  most  specific,  requiring  ex- 
aniinaiion,  with  vouchers,  that  the  frauds  upon  the  revenune  by  Swarl- 
wont  were  committed.  jSo  account  appears  ever  to  have  been  returned 
to  the  P^irst  Auditor  by  the  Comptroller,  because  the  vouchers  of  the  bond 
account;;  of  Swartwout  were  not  transmitted  with  the  Auditor's  certificate 
tluToon. 

It  is  to  this  culpable  disregard  of  law  and  neglect  of  duty  in  the  office 
of  the  Auditor  that  is  altributahlu  the  escape  of  Swartwout's  fraud  and 
defalcation  from  deteclion. 

The  same  neglect  in  this  most  importani  branch  of  Swartwout's  ac- 
count appears  to  have  prevailed  in  the  Auditor's  office  since  1832.  It 
then  originated  in  the  disuic  of  the  records  required  by  positive  instruc- 
tions, as  well  as  from  the  nature  of  tl  e  cxiiminalion  of  accomits  that  is 
required  by  law  of  the  Auditor.  'I'his  feature  in  the  administration  of 
this  ofiice  is  exhibited  in  the  following  examination  : 

Answers  of  Mr.  Undcricood.  a  principal  clerk  in  the  office. 

Examined  by  3Ir.  Foster. 

Queslion  20.  Were  not  the  accounts,  abstracts,  and  vouchers,  or  other 
papers  which  were  before  you  at  the  time  you  made  those  exutninations 
and  statements,  such  as  are  usually  before  you  in  your  examinations 
and  statements  when  ''upon  the  same  class  of  duties  ?" 

,inswe7'.  They  were. 

Question  21.  In  that  examinatiun  and  statement,  did  3"ou  not  bestow 
the  same  care  and  attention  as  you  have  at  other  times  bestowed  ''  upon 
the  same  class  of  duties  ?" 

Jlnswer.  I  did,  except  that,  in  relation  lo  the  bond  account,  I  made  no 
examination  whatever. 

Queslion  22.  What  were  the  reasons  why  you  did  not  examine  the 
bond  account,  at  the  same  time  that  you  examined  the  other  accounts? 

^^nsirer.  As  "the  bonds  taken  in  New  York  are  recorded  in  the  First 
Auditor's  office  only  to  the  2d  quarter  of  1834,  while  those  paid  or  put  in 
suit  arc  marked  olf  only  to  the  4th  quarter  of  1832,"  it  was  uWerly  im- 
practicable for  me  to  make  such  an  examination  of  the  bond  accounts  for 
the  3d  and  4th  quarters  of  1S37  as  would  test  their  accuracy.  As  soon  as 
the  account  of  the  customs  was  received  at  the  office  of  the  First  Auditor, 
the  bond  accounts  were  iianded  in  to  the  clerk,  whose  duty  it  was  to  enter 
and  mark  oft' the  bonds;  and  there  they  remain  to  this  day. 

Question  23.  Did  you,  on  tliat  examination  and  statement^  discover 
any  defalcation  on  the  part  of  Mr.  Swartwout  ? 

Jlnswer.  I  did  not. 

Examined  by  Mr.  Smith. 

Question  M.  Is  it  true,  or  is  it  not  true,  that  the  examination  by  the 
First  Auditor  of  the  Tieasury,  prescribed  by  law,  of  Mr.  Swartwout's 
quarterly  accounts  of  bonds  taken  and  bonds  paid,  as  returned  to  the 
Treasury  Department,  lias  been  entirely  omitted  since  1832:  and  is  it  true, 
or  not  true,  that  this  omission  to  examine  said  accounts  is  the  sole  reason 


Rep.  No.  313.  43 

why  Swartwout's  defalcations  on  paid  bonds  have  escaped  detection  at 
the  Treasury  Department  mjtil  after  lie  left  his  office  ? 

JJnsicer.  The  bond  accounts  of  New  York  have  not  been  examined,  it 
is  believed,  in  the  office  of  the  First  Auditor,  since  the  4th  quarter  of  l<'>i32. 
Had  said  accounts  been  thorouglily  examined  as  soon  as  received  at  the 
office  of  the  First  Auditor,  the  defalcation  in  regard  to  tiie  bonds  must,  in 
my  opinion,  have  been  discovered  before  the  expiration  of  Mr.  Swart- 
wout's term.  Whether  the  omission  to  make  such  examination  be  the 
sole  reason  why  his  defalcation  on  said  bonds  was  not  so  discovered,  I  do 
not  know. 

Question  \2.  Do  you  know,  from  your  acquaintance  with  the  nature 
of  said  accounts,  and  your  experience  in  the  Auditor's  office,  any  other 
reason  for  Swartwout's  successful  concealment  of  his  defalcations,  than 
the  omission  to  examine  his  accounts  thoroughly  "  at  the  Auditor's  office  ?" 
Please  state  also  for  what  period  you  have  been  connected  with  said  of- 
fice as  an  accoinitaut  upon  custom-house  returns  ? 

J3nsive)\  I  do  not  know,  as  regards  the  returns  of  Mr.  Swartwout 
to  the  First  Auditor,  any  reason  why  his  defalcations  were  not  discovered 
sooner,  other  than  the  omission  to  examine  his  bond  account  promptly 
and  thoroughly  at  the  First  Auditor's  office. 

It  is  apparent  to  the  committee,  from  the  examination  and  testimony, 
that  the  First  Auditor  himself  has  never,  until  very  recently,  made  him- 
self acquainted  with  the  internal  organization  and  duties  of  his  office,  or 
the  system  of  checks  instituted  under  Treasury  regulations  for  it.  Of 
course,  if  the  chief  in  the  office  is  either  negligent  or  ignorant  of  the  duties 
devolved  by  law  upon  him,  or  negligent  because  ignorant  of  the  modes 
instituted  and  in  force  through  prior  years  of  executing  those  duties,  the 
subordinates  of  the  office  may  find  ample  opportunity  for  indulging  in 
any  de2:ree  of  nediarence  in  their  vocations,  to  the  imminent  hazard  of  the 
whole  revenue  of  the  nation,  and  its  consequent  loss  ni  unmeasured  and 
unknown  masses.  In  answer  9  he  says:  "When  I  came  into  office,  on 
''the  1st  of  November,  183G,  the  recording  of  the  abstracts  of  bonds  taken 
in  New  York  was,  I  think,  as  far  back  as  some  time  in  1833,  and  the 
checking  oft'  was  back  somewhere  in  1S32.  I  was  a  considerable  time 
in  office  before  my  attention  was  drawn  to  these  bond  registers ;  and,  at 
first,  I  only  regarded  them  as  records  for  the  purpose  of  reference  when 
occasion  might  require,  and  did  not  understand  that  they  were  intended 
to  check  the  collector  in  his  quarterly  returns.  At  what  time  I  did  become 
acquainted  with  the  object  for  which  they  were  instituted,  I  cannot  recol- 
lect; and  perhups  even  then  I  did  not  fully  estimate  the  importance  of 
having  them  brought  up.  The  manner  in  which  they  had  been  kept,  and 
the  little  importance  that  seemed  to  have  been  attached  to  them  by  my 
predecessor,  had  certainly  lessened  their  importance  in  my  estimation.  I 
however  did  direct  another  clerk,  whom  I  had  employed  in  recording  the 
reports  on  the  collectors'  accounts,  to  devote  any  time  he  had  to  spare 
from  recording  the  reports,  to  recording  bonds ;  which  he  did  until  other 
business  required  his  attention.  But,  I  deem  it  proper  to  say,  that,  if  I 
had  been  fully  aware  of  the  use  of  these  registers  at  the  moment  I  came 
into  office,  ond  had  put  a  clerk  his  whole  time  to  recording  and  checking 
ofl"  the  New  York  bond  account,  he  would  not  have  been  able  to  have 
brought  it  up  so  r.s  to  have  discovered  the  error  in  Swartwout's  bond  ac- 
count of  1S37,  mucli,  if  any,  before  the  time  it  was  discovered.     Indeed, 


44  Hep.  Xo.  313. 

it  is  douhtfiil,  ill  my  mind,  whether  one  clerk  could  have  hroxight  tliem? 
u])  by  tliat  time,  it',  however,  the  recording  of  the  bonds  had  not  been 
required  by  the  former  practice,  and  the  original  abstracts  had  been  used 
for  checking  ofl'  the  bonds  paid  and  put  in  suit,  by  which  means  this  ex- 
amination, if  it  had  been  kept  up  from  the  commencement,  could  have 
been  made  in  time  to  accompany  the  report  on  the  quarterly  account,  it 
would  have  been  discovered  in  the  Auditor's  office,  somewhere  about  the 
1st  of  September,  1837,  that  Mr.  Swartwout  had  failed  to  account  for  a 
large  amount  of  bonds  that  had  fallen  due  in  the  1st  quarter  of  that 
year ;  and  this  discovery,  it  is  presumed,  would,  as  a  matter  of  course, 
have  led  to  inquiry  ;  but,  in  the  condition  in  which  the  bonds  then  were, 
in  regard  to  the  right  of  extension,  the  collector  might  have  deceived  the 
Department  for  a  time." 

It  has  been  made  manifest  to  the  committee,  in  their  investigation,  that 
a  recurrence  to  the  records  of  cither  the  Comptroller's  otlice  or  of  the 
First  Auditor's  oflice,  by  either  of  the  incumbenls  of  the?e  offices,  would 
readily  have  instructed  them  in  the  importance  of  the  bond  register,  which 
has  been  thus  cul]iably  neglected.  It  would  have  been  found  that  the 
very  occurrence  which  has  now  happened,  though  in  a  degree  not  in  like 
manner  so  alarming  to  tlie  public  mind  as  the  latter,  gave  rise  to  the  in- 
stitution of  the  necessary  means  to  prevent  its  repetition  in  all  future  time, 
while  due  diligence  should  be  used  in  these  accounting  officers.  The  fol- 
lowing examiiiation  of  the  Comptroller  places  this  position  beyond  cavil, 
and  leaves  as  well  the  Auditor  as  the  Comptroller  without  apology  for 
any  neglect  of  duty  in  relation  to  the  bond  accounts  of  collectors. 

Examined  by  Air.  Smith. 

Question  21.  Please  examine  the  following  extract,  and  say  if  it  be  a 
true  copy  from  a  circular  of  the  First  Comptroller  to  "  collectors,  naval 
officers,  and  surveyors,"  dated  August  5,  1822  ;  and  if  yea,  state  when,  if 
ever,  its  requirements  have  been  modified  or  repealed: 

"  PVequent  calls  being  made  by  Congress  on  the  officers  of  the  Treasury 
for  information  re'<pecting  duty  bonds  outstanding,  duty  bonds  in  suit,  &c., 
and  anticipating  that  similar  calls  will  continue  to  be  made  at  subsequent 
sessions,  it  has  been  concluded,  in  order  to  facilitate  this  object,  as  also  to 
be  in  possession  of  more  precise  information,  from  time  to  time,  of  the 
existing  state  of  all  custom-house  bonds,  to  keep  a  register  at  the  Treasury 
of  all  such  bonds,  so  that  any  information  in  relation  to  them,  on  those 
points  which  may  hereafter  be  required,  can  be  given  by  this  Department, 
without  recurring  in  the  fijst  instance,  as  heretofore,  to  the  collectors  of 
the  customs. 

"  To  make  this  register  complete,  it  will  be  necessary  to  obtain  from  the 
several  collectors  lists  of  the  bonds  which  have  been  taken  in  their  dis- 
tricts, respectively,  and  which  may  remain  due  and  un|)aid  on  the  30th 
September  next. 

"These  lists  you  are  requested  to  furnish,  accordingly,  with  as  little 
delay  after  that  day  as  practicable,  observing  the  accompanying  forms. 

"The  usual  quarter-yearly  bond  accounis,  which  are  to  be  rendered 
for  the  quarter  ending  the  30th  proximo,  and  thereafter,  will  contain  all 
the  information  wliich  may  be  necessary  to  keep  the  register  alluded  to. 


Rep.  IS^o.  313.  45 

-provided  care  be  taken  by  the  collectors  that  a  specification  be  always 
made  at  the  end  of  each  bond  account,  showing  what  part  of  the  balance 
of  bonds  outstanding  consists  in  bonds  not  due,  and  what  part  in  bonds 
put  in  suit. 

"  Having  reason  to  believe  that,  by  this  arrangement,  the  collectors  will 
be  saved  a  great  deal  of  trouble  and  labor  hereafter,  it  is  hoped  that  every 
exertion  will  be  made  that  the  lists  now  required  be  as  perfect  as  pos- 
sible." 

Jlnswtr.  I  have  examined  the  above  "  extract,"  and  find  it  to  be  a  true 
copy  from  a  circular  of  the  First  Comptroller  to  collectors,  naval  otiicers, 
and  surveyors^  dated  August  5,  1S22 — a  part  of  the  records  of  the  Comp- 
troller's olfice.  Its  re!]uirements  have  never  been  repealed,  nor  essentially 
modified. 

The  contemplated  "  register"  of  bonds  was  to  be  kept  in  the  Auditor's 
office,  as  will  appear  from  the  annexed  copy  (marked  A)  of  a  paper  on 
file  in  the  Comptroller's  office,  dated  27th  October,  1S30,  signed  by  R. 
Harrison,  late  Auditor. 

A. 

In  the  year  1822,  //  loas  discovered  that  some  collectors  of  the  customs 
had  been  in  the  practice  of  snaking  false  returns  to  the  Treasury,  by 
retaining  or  continuing  in  their  account  bonds  as  outstanding,  which 
had  been  actually  paid  ;  thereby  increasing  the  balance  of  their  quar- 
terly accounts  in  bonds,  and  diminishing  in  the  same  proportion  that 
of  cash  on  hand.  With  a  view  to  the  possession  of  means  to  check  and 
prevent  such  practice  thereafter,  it  was,  on  a  conference  between  the  ac- 
counting officers  and  Mr.  Secretary  Crawford,  (and  I  think  at  my  sugges- 
tion,) arranged  that  a  register  should  be  kept  in  the  Auditor's  office,  of  all 
bonds  then  existing,  as  well  as  of  those  to  be  subsequently  taken  and  dis- 
charged in  the  several  collection  districts. 

In  pursuance  of  this  arrangement,  the  collectors  were  required  by  a  cir- 
cular of  the  Comptroller  dated  August  5,  1S22,  to  make  out  and  forward 
a  full  and  complete  list  of  all  bonds  which  should  remain  unpaid  in  their 
respective  districts  on  the  30th  of  September  following.  As  these  lists 
came  in,  they  were  entered  in  the  appropriate  registers  ;  and  the  same 
course  has  obtained  with  respect  to  those  since  periodically  received  with 
the  quarterly  returns  of  the  collectors. 

This  arrangement  was  deemed  the  more  necessary,  in  consequence  of 
the  loss  of  accounts  by  the  destruction  of  the  Treasury  building  in  the 
year  ISl  I ;  and  it  is  believed  to  have  eflected,  besides,  the  saving  of  much 
money  to  the  United  States. 

R.  HARRISON. 

Auditor's  Office,  October  27,  1830. 

^nsiver  continued.  The  Comptroller's  office  had  been  for  many  years 
in  the  practice  of  receiving  the  public  accounts  which  ought  properly,  and 
according  to  law,  to  have  been  sent  by  the  officers  direct  to  the  Auditor. 
On  the  1st  March,  1830,  this  erroneous  practice  was  corrected  by  circular 
instructions  from  the  Comptroller's  office,  (a  copy  of  which  is  annexed, 
marked  B ;)  and  since  that  time  the  public  accounts  have  been  received 
by  the  Auditor. 


46  Rep.  No.  313. 

B. 

[CIRCULAR.] 

Treasury  Department, 
Comptroller's  Office,  March  1,  1830. 

Sir  •  It  has  been  tlie  practice,  since  the  commencement  of  the  Govern- 
ment, originating,  it  is  presumed,  in  a  Treasury  regulation,  tor  all  oflicers 
whose  accounts  were  to  be  settled  in  this  Department  to  render  them  to 
ihisotiice.  • 

The  reason  of  this  practice  cannot  be  well  accounted  for,  because  the 
5th  section  of  the  act  of  2d  September,  17S9,  to  establish  the  Treasury 
Department,  directs  that  it  shall  be  the  duty  of  the  Auditor  (there  being 
but  one  Auditor  at  that  time)  " /o  receive  all  public  accounts,  and,  after 
examination,  to  certify  the  balance,  and  transmit  the  accounts,  with  the 
vouchers  and  certilicate,  to  the  Comptroller,  lor  his  decision  thereon  ;" 
and  the  4th  section  of  the  act  of  3d  JNl arch,  1817,  to  provide  for  the  prompt 
settlement  of  public  accounts,  directs  "tliat  it  shall  be  the  duty  of  the  First 
„^uditor  to  receive  all  accounts  accruing  in  the  Treasury  Department,  and^ 
after  examination,  to  pursue  the  same  course  with  that  required  in  the 
first-mentioned  act." 

The  practice  which  thus  obtained,  being  in  operation  at  the  time  I  came 
into  office,  was  acquiesced  in,  and  has  been  contiimed  ever  since ;  but  the 
great  accumulation  of  the  business  of  this  office  induced  an  investigation 
to  ascertain  whether  it  could  not  be  relieved  from  some  part  of  it ;  when, 
the  laws  referred  to  being  brought  into  view,  it  was,  upon  a  consultation 
with  the  Secretary  of  the  Treasury,  concluded  to  be  the  correct  construc- 
tion, that,  according  to  their  requirements,  all  accounts  to  be  reported  upon 
by  the  First  Auditor  should  be  transmitted  directly  to  him.  This  course 
you  will  be  pleased  to  adopt  in  future,  commencing  with  your  returns  for 
the  first  quarter  of  the  present  year;  to  which  an  exception  is  to  be  made 
in  relation  to  the  annual  accounts  of  emoluments  and  expenditures  of  the 
collectors,  naval  officers,  and  surveyors,  required  by  the  2d  section  of  the 
compensation  act  of  2d  March,  179.9,  the  form  of  which  is  subjoined  to 
the  circular  from  this  Department  to  those  officers,  under  date  of  the  25th 
August,  1S23. 

These  accounts  are,  as  heretofore,  to  be  transmitted  to  this  office,  for 
the  object  stated  in  the  section  referred  to. 

It  is  deemed  proper,  on  this  occasion,  to  inform  you,  in  order  that  you 
may  not  misdirect  yoiu"  accounts  and  returns,  that  Richard  Harrison,  Esq.,. 
is  the  First  Auditor  of  the  Treasury. 

Respectfully, 

JOS.  ANDERSON,  Comptroller. 

Ansxoer  continued.  The  term  "  this  Department,"  as  it  occiu-s  in  the 
extract  from  the  circular  of  August  5,  1822,  is  always  used  by  the  Comp- 
troller in  reference  to  the  Treasury/  Deparlnicnt,  generally,  of  which  the 
Comptroller's  offiice  is  frequently  tlie  medium  of  conveying  instructions  or 
collecting  information.  When  the  Comptroller's  office  projier  is  meant, 
the  term  used  by  the  Comptroller  in  his  comnumications  is  "this  office." 

The  frauds  practised  by  Mr.  Swartwout,  in  regard  to  his  cash  balances 


Rep.  No.  313.  47 

and  bonds  in  his  tveekb/  returns  to  the  Secretary  of  the  Treasury,  furnish 
no  apology  for  the  neglect  of  the  examining  Auditor  or  Comptroller;  be- 
cause it  is  not  upon  these  weekly  returns  that  these  officers  settle  the  col- 
lectors' quarterly  accounts.  In  fact,  these  officers  never  see  such  returns. 
This  f\ict  is  deduced,  though  in  somewhat  an  attenuated  form,  from  the 
following  examination  of  tlie  Auditor  himself: 

Examined  by  Mr.  Smith. 

Question  25.  If  the  Secretary  of  the  Treasury  is  not  the  accounting 
officer  of  the  Treasury  to  adjust  and  settle  collectors'  accounts,  how  did 
this  concealment  from  him,  in  Mr.  Swartwout's  weekly  cash  returns,  as 
described  in  your  last  answer,  of  any  cash  items  with  which  he  had  debit- 
ed himself  in  his  quarterly  accounts,  in  any  degree  enable  Mr.  Swartwout 
to  become  a  defaulter  for  such  cash  items  ? 

*^nsiver.  I  understand  there  are  weekly  returns  made  to  the  Secretary 
of  the  amount  of  cash  received  by  the  collector,  and  of  payments  made 
by  him,  exhibiting  the  balance  on  hand.  Hence,  it  will  readily  be  per- 
ceived that,  although  the  collector  may  debit  himself  correctly  in  his 
quarterly  accounts  with  every  tiling  with  which  he  is  chargeable,  yet,  if 
he  fails  to  cliarge  himself  in  his  cash  account  with  the  whole  amount  of 
cash  received,  and  to  return  the  true  amount  in  his  weekly  returns,  he 
may  stand  truly  charged,  on  his  quarterly  accounts,  with  the  whole 
amount  for  which  he  is  liable  ;  but  it  will  not  appear  as  cash  on  hand  in 
his  weekly  returns.  It  was  in  this  way,  as  I  understand,  that  a  very  large 
amount  of  Swartwout's  defalcation  was  concealed  from  the  view  of  the 
Secretary  of  the  Treasury  ;  and  this  kind  of  deception  might  be  practised 
toa  considerable  extent, as  long  as  a  collector  is  continued  in  office,  unless 
it  could  be  discovered  from  a  comparison  of  the  other  returns  made  to 
the  Secretary,  or  by  a  comparison  with  the  quarterly  returns  made  to  the 
Auditor, 

Question  2G.  In  your  first  answer  to  my  interrogatory,  you  say  Mr. 
Swartwout's  own  accounts,  up  to  March  28,  183S,  as  rendered  to  the 
Treasury  Depariment,  required  no  new  debit  to  include  against  him  all 
moneys  for  which  he  was  in  fact  indebted  to  the  United  States,  either  as 
"tonnage  duties,"  "forfeitures,"  "  Treasury  warrants,"  "  office  expenses," 
or  "cash  to  be  refunded  to  merchants," 

In  your  second  answer,  you  say  that,  notwithstanding  his  whole  indebt- 
edness thus  made  to  appear  in  his  quarterly  accounts,  he  failed  to  render 
an  account  of  said  items  as  cash  in  his  weekly  returns  to  the  Secretary  of 
the  Treasury,  and  thus  kept  their  amotnit  out  of  the  view  of  the  Secrc- 
rary  as  cash  on  hand. 

Will  you  now  state,  if  the  Secretary  of  the  Treasury  be  not  the  ac- 
counting officer  of  the  Treasury  to  adjust  and  settle  collectors'  quarterly 
accounts,  how  did  any  such  deception  by  Swartwout,  as  you  have  de- 
scribed as  made  in  his  weekly  cash  returns  to  the  Secretary,  enable  him 
to  become  a  defaulter  for  said  items  with  the  accounting  officers,  inas- 
much as  the  amount  of  said  items  appeared  in  his  quarterly  accounts  that 
were  returned  to  such  accounting  officers  ? 

Answer.  The  failure  to  return  the  true  amount  of  money  received  by 
the  collector  to  the  Secretary  of  the  Treasury,  in  the  weekly  returns,  does 
not  affect  the  settlement  of  the  quarterly  accounts.     The  quarterly  ac- 


48  Bep.  No.  313. 

counts  may  exhibit  tlie  true  state  of  his  accounts  up  to  the  end  of  the 
quarter,  iiolwilhstauding  his  wceklij  rtlitrns  made  to  the  Secrctcn-ymay 
be  false.  And  if  the  weekly  returns  made  were  false,  and  did  not  con- 
tain a  true  account  of  the  moneys  he  had  actually  received,  he  would  be 
in  default  on  his  quarterly  account  at  the  close  of  the  quarter. 

It  is,  then,  in  every  way  established,  that  to  the  neglect  of  the  accounting 
officers  of  the  Treasury  Department,  equally  as  to  Swartwout's  own  infi- 
delity, the  loss  of  the  public  money,  by  Swartwout's  defalcations,  has 
occurred. 

The  following  examinations  will  still  further  elucidate  this  position,: 

Mr.  Fleming  examined  by  Mr.  Wise. 

Question  91.  Were  not  vouchers  for  all  debits  and  credits  returned 
with  weekly  and  quarterly  accounts;  and  could  not  Mr.  Swartwout's  in- 
debtedness at  any  time  be  ascertained  on  each  item  o(^^  forfeit ures,^  &c., 
from  them  ? 

Jinswer.  Vouchers  for  all  debits,  and  for  all  credits  where  vouchers 
were  proper,  were  always  returned  with  the  quarterly  accounts;  and  Mr. 
Swartwout's  indebtedness  at  any  time  upon  each  item  of  "  forfeitures," 
&c.,  could  have  been  ascertained  from  them, 

Mr.  Fleming  examined  by  Mr.  Smith. 

Question  87.  If  an  examination  had  been  made  at  the  Treasury  De- 
partment of  the  collectors'  quarterly  returns  and  the  accompanying  alpha- 
betically-marked explanatory  abstracts  and  vouchers,  would  it  not  have 
been  easily  determined  whether  any  of  the  cash  items  credited  in  such 
returns  constituted  a  component  part  of  the  item  of  "cash  retained,"  or 
a  part  of  the  item  of  suspended  or  unsettled  accounts;  and  do  or  do  not 
the  explanatory  abstracts  and  vouchers  that  accompanied  each  of  Mr. 
Swartwout's  quarterly  returns  contain  full  and  explicit  information  to 
enable  the  examining  olFicers  at  the  Treasury  Department  to  determine 
into  what  general  item  of  the  recapitulatory  explanation  at  the  foot  of  each 
quarterly  return  each  particular  item  of  credit  lias  been  entered? 

,/Jns(Ccr.  To  the  entire  interrogatory  I  answer,  yes. 

Question  100.  Had  the  Treasury  Dc^partment  at  any  time  required  in- 
formation relative  to  the  items  of  Mr.  Swartwout's  "unsettled  and  sus- 
pense accounts^''  as  set  forth  in  his  quarterly  r«;turns,  would  not  the  man- 
ner in  which  he  had  accounted  for  said  sum  of  yS()0j291  42  have  appeared 
distinctly  ? 

^Qnswer.  I  think  it  would. 

Question  75.  Could  "the  large  sum  of  i5SO,769  53,''^  described  in  your 
last  answer,  retained  by  Swart wout  in  lS3t),  have  become  a  defalcation, 
if  the  Treasury  Department  had  not  lost  sight  of  it  in  the  examination  of 
his  accounts,  inasujuch  as  you  say  in  your  last  answer  that  it  was  retained 
"  with  the  knowledge  of  the  Treasury  ?" 

.Answer.   It  could  not. 

But  no  call  fur  explanation  was  ever  made  upon  Mr.  Swartwout  by 
any  of  the  accounting  officers.  The  subjoined  testimony  establishes  this 
fact. 


?ep.  No.  313.  49 

Mr.  Fleming  examined  by  Mr.  Smith. 

Que.slion  99.  Was  Mr.  Swartwout,  at  any  time  within  your  knowledge, 
required  by  the  Treasury  Deparlnient  to  explain  or  furnish  a  l)ill  of  the 
items  upon  which,  from  time  to  time,  he  reported  liis  balances  dne  the 
Government  under  the  general  head  of  "  amount  of  unsettled  and  stiS' 
pcnse  accounts ?'^ 

,jinswer.  Mr.  Swartwout  was  never,  to  my  knowledge,  since  .Inly,  1836, 
when  I  became  auditor,  Acquired  to  explain  or  furnish  any  such  items. 

Air.  Underwood  examined  by  Mr.  Curtis. 

Question  14.  Do  you  know  that  any  call  was  at  any  time  made,  prior 
to  your  visit  to  New  York  in  November  last,  either  by  or  under  the  direc- 
tion of  the  Auditor  of  the  Treasury,  or  any  other  Treasury  olficer,  for  an 
explanation  from  Mr.  Swartwout  of  the  nature  of  the  items  embraced 
under  the  designations  of  '"'  protests,"  "  deposites  for  unascertained  du- 
ties," *'  unsettled  and  suspense  accounts  ?"  If  yea,  state  when  and  by 
whom  such  call  was  made, 

*^nswer.  I  liad  heard  that  Mr.  Swartwout  retained  a  large  sum  to  meet 
the  payment  of  duties  under  "protest;"  but  I  knew  nothing  of  any  pro- 
ceedings instituted  by  any  Treasury  officer  in  relation  to  said  "protests," 
^'  deposites  for  unascertained  duties,"  or  "  unsettled  and  suspense  ac- 
counts," prior  to  my  visit  to  New  York  in  November  last. 

George  IVood,  clerk  in  Comptroller's  offtce,  examined  by  Mr.  Smith. 

Question  5.  Was  any  call,  within  your  knowledge,  ever  made  upon^ 
Mr.  Swartwout,  by  the  JPirst  Comptroller  of  the  Treasury,  to  explain  what 
items  were  contained  in  his  suspense  account,  which  has,  from  time  to 
time,  made  a  part  of  the  aggregate  of  his  quarterly  account  ?    If  yea,  state 
when  such  call  was  made. 

Jinswer.  I  have  no  recollection  of  any  such  call. 

Jesse  Miller,  First  .Auditor,  examined  by  Mr.  Smith. 

Question  31.  Was  any  call,  within  your  knowledge,  made  upon  Mr. 
Swartwout  at  any  time,  from  your  Department,  before  the  expiration  of 
his  term  of  office,  to  explain  what  items  were  contained  in  his  suspense 
account  as  debited  to  himself  uniformly  in  his  quarterly  account  ?  If  yea, 
when  was  such  call  made? 

Jinswer.  I  know  of  no  such  call  prior  to  the  time  alluded  to,  but  have 
understood  that  there  was  some  investigation  in  relation  to  these  accounts 
at  the  time  Swartwout's  last  nomination  was  before  the  Senate.  In  the 
settlement  of  his  quarterly  accounts,  after  giving  him  credit  for  such  pay- 
ments as  he  produced  vouchers  for,  and  the  bonds,  the  balance,  I  believe, 
has  generally,  if  not  always,  in  the  statement  and  report,  been  designated 
as  cash  on  hand. 

Question  32.  Was  the  letter  marked  M,  and  dated  August  13,1838, 
contained  in  House  document  13,  p.  105,  the  only  letter  sent  l>om  your 
office  calling  upon  Mr.  Swartwout  for  a  vendhion  of  his  last  quarterly 
accounts  ?  If  nay,  please  annex  a  copy  of  all  that  preceded  or  succeeded 
said  letter  on  the  subject. 


50  Rep.  No.  313. 

Jinswer.  I  believe  it  was.  It  is  the  only  one  found  on  record  to  him 
in  relation  to  that  account.  When  I  stated,  in  my  answer  to  some  other 
interrogatory,  that  he  had  been  repeatedly  called  on,  I  had  reference  to  the 
calls  from  the  Comptroller's  office  as  well  as  my  own. 

J.  N.  Barker,  First  Compl roller,  excwi'ined  brj  Mr.  ^inilh. 

Question  10.  Was  any  call,  within  your  knpwledge,  made  upon  Mr, 
Swartwout,  at  any  time  before  the  expiration  of  his  term  of  office,  to  ex- 
plain what  iten}S  were  contained  in  his  suspense  account,  as  debited  to 
himself,  uniformly,  in  his  quarterly  accoimt  ?  If  yea,  state  wlien  such  call 
was  made. 

Jinswer.  There  was  no  such  call  made  within  my  knowledge. 

Without  even  calling  upon  the  collector  for  explanation,  the  entire  de- 
falcation of  Swartwout  upon  his  bond  account  might  have  been  detected 
by  due  diligence  in  the  office  of  the  Auditor,  had  there  been  a  comparison 
made  of  the  accounts  retained  in  the  Auditor's  office.  Tins  appears  from 
the  following  testimony  ; 

Mr.  Miller,  First  ,/2uditor,  exaynined  hy  Mr.  Smith. 

Question  28.  Does  or  does  not  each  of  Mr.  Swart  wout's  quarterly  returns 
of  bonds  specify  the  names  of  the  parties  to  each  bond,  its  date,  its  amount, 
and  when  it  becomes  due;  also,  the  names  of  the  parties  to  each  bond 
that  has  been  paid,  its  date,  and  amount  ? 

Jinsioer.  I  believe  they  do  ;  but  the  abstract  of  bonds  returned  as  paid 
within  the  quarters  when  his  bond  del'alcations  occurred,  could  not  have 
contained  a  description  of  those  bonds  on  which  he  liad  received  the 
money  and  omitted  to  return  "  paid." 

Question  2,9.  By  a  comparison  at  the  Treasury  Department  of  the  col- 
lector's quarterly  returns  for  any  quarter  of  bonds  paid  within  each  quar- 
ter, with  his  ])receding  quarterly  return  of  bonds  payable  in  that  quarter, 
is  not  the  examining  officer  enabled  to  detect  any  omission  to  account  for 
the  bonds  becoming  due  in  such  last  (quarter? 

Jinswer.  I  answer  the  above  interrogatory  in  the  affirmative  ;  and  I 
refer  to  my  letter  to  the  Secretary  of  the  Treasury,  (contained  in  docu- 
ment No.  1.3,)  and  to  my  answer  to  interrogatory  No,  .9,  put  by  Mr.  Cur- 
tis, as  explanatory. 

Question  30.  Has  any  such  comj)arison  as  is  referred  to  in  your  last 
answer  been  made  in  the  office  of  the  First  Auditor,  of  the  bond  account 
of  Samuel  Swartwout,  collector,  to  ascertain  if  he  had  accounted  for  bonds 
previonsly  returned  by  him  as  falling  due,  been  made  in  said  Auditor's 
office  for  some  years  past  ?  If  nay,  state  to  what  period  the  omission  ex- 
tends back. 

Jinswer.  The  recording  of  the  bonds  taken  was  as  far  l)ack  as  about 
the  1st  Jamiary,  1833,  when  I  came  into  office,  and  are  now  only  brought 
up  to  the  .second  quarter  of  1834 ;  and  the  bonds  paid  and  put  in  suit  are 
not  marked  ojf  later  than  the  4th  quarter  of  1832  :  consequently,  the  bond 
abstracts  in  the  quarters  in  which  the  bond  defalcations  occurred  were  not 
checked  olf  or  compared. 


Rep.  No.  313.  51 

Mr.  Flerning  examined  by  Mr.  Smith. 

Question  65.  Do  or  do  not  the  weekly  returns  of  Mr.  Swartwout's 
cash  account  to  the  Treasury  Department  cover  and  embrace,  in  the  shape 
of  cash,  all  the  elements  of  liis  quarterly  returns  ? 

»dnswer.  They  do,  except  the  accounts  of  official  emoluments,  and  cer- 
tain accounts  which  may  be  payable  imder  appropriations  of  Congress; 
these  are  kept  distinct,  and  distinct  returns  are  made  of  them.  ■ 

Question  QG.  By  reference  to  and  comparison,  at  the  Treasury  Depart- 
ment, of  the  collector's  weekly  report  of  cash  received  on  bonds  in  any 
week,  with  the  collector's  previous  quarterly  returns  of  bonds  becoming 
due  in  such  week,  is  not  the  examining  otficer  enabled  at  once  to  detect 
any  deficiency  in  that  item  of  the  collector's  weekly  cash  return  ? 

Answer.  If  the  quarterly  accoun.ts  of  bonds  becoming  due  were  subdi- 
vided at  the  Treasury,  into  sums  exhibiting  each  week's  payments,  the 
examining  officer  would  be  enabled  to  detect  any  deficiency,  by  com- 
parhig  such  sums  with  the  weekly  returns. 

Mr.  F/emi)ig  examined,  by  Mr.  f-Fagener. 

Question  44.  Question  4  states,  upon  the  quarterly  accounts  ren- 
dered by  Mr.  Swartwout,  would  not  an  examination  of  tiiem,  and  a  stri- 
king of  the  balance,  have  shown  the  true  amount  due  from  Mr.  Swart- 
wout at  any  time  ;  your  answer  is,  it  would. 

From  the  confused  state  of  Mr.  Swartwout's  accounts,  the  time  of  pay- 
ment of  bonds  extended,  and  the  large  number  to  be  examined,  could  his 
accounts  at  the  Treasury  Department  have  been  examined  correctly  and 
satisfactorily  until  the  final  close  of  his  accounts;  and,  until  then,  could 
the  true  amount  due  from  Mi:.  Swartwout  have  been  ascertained  ?  I 
wish  you  particularly  to  testify  to  the  present  case. 

Answer.  If  the  bond  accounts  had  been  thoroughly  and  promptly  ex- 
amined in  the  First  Auditor's  office,  the  deficiency  in  the  bonds  payable  in. 
the  first  quarter,  1S37,  must  have  been  discovered  before  Mr.  Swart- 
wout's term  of  office  expired  ;  but  whether  he  could  have  concealed  the 
real  facts  of  the  case  from  the  Department,  by  a  reference  to  the  embar- 
rassment and  the  confusion  in  his  office  arising  from  the  non-payment 
and  extension  of  bonds,  until  the  close  of  his  term,  I  do  not  know :  I 
rather  am  of  opinion  that  he  could  not. 

From  the  preceding  testimony,  the  committee  report  the  following  facts 
as  established  : 

1st.  That  the  First  Auditor  of  the  Treasury  has  been  guilty  of  culpa- 
ble disregard  of  law  and  neglect  of  duty  in  examining  and  certifying  the 
correctness  of  the  accounts  of  the  late  collector  at  New  York,  without 
having  compared  them  thoroughly  with  the  vouchers  accompanying  the 
same;  and  also  in  transmitting  said  accounts  to  the  First  Comptroller 
certified  for  revision,  while  the  most  important  vouchers  therefor  were 
retained  in  his  own  office. 

2d.  1'hat  no  fraud  jiractised  by  the  said  collector,  in  his  weekly  returns 
of  cash  to  the  Secretary  of  the  Treasury,  could  aflect  the  just  and  true 
settlement  of  the  quarterly  accounts  of  said  collector  at  the  Auditor's 
office,  as  said  weekly  returns  form  no  part  of  the  basis  of  the  settlement 
of  said  quarterly  accounts  by  the  Auditor,  and  therefore  furnish  no  apolo- 
gy for  the  neglect  of  the  Auditor  to  examine  the  same  thoroughly. 


52  Hep.  No.   313. 

3d.  That  witlioiU  the  aid  of  the  register  of  bond  accounts  of  collectors, 
required  by  law  and  Treasury  circular  to  be  kept  by  the  Auditor,  to 
enable  him  to  detect  frauds  and  defalcations,  if  any  exist;,  the  said  Auditor 
could  have  thoroughly  examined  said  Swartwout's  quarterly  account 
during  any  quarter  since  said  Auditor  has  been  in  office,  inasnuich  as  the 
original  ({uarterly  accounts  were  retained  against  law  in  his  olfice,  and 
furnished  tL:e  same  means  of  a  comparison  as  a  register  could  have  fur- 
nislied. 

4th.  That  in  the  culpable  disregard  of  law  and  neglect  of  duty,  as 
aforesaid,  by  said  Auditor,  is  found  a  primary  cause  why  the  immense 
delalcations  of  said  Swartwout  in  1837,  and  subsequently,  escaped  early 
detection,  and  have  resulted  in  the  probable  loss  of  a  large  amount  of  the 
public  treasure. 

Cause  4. — Culpable  disregard  of  law  and  neglect  of  official  duty  by 
the  late  and  present  First  Comptrollers  of  the  Treasury. 

The  functions  of  the  First  Conqjtroller  of  the  Treasury  are  prescribed 
in  the  act  of  March  3d,  1S17,  "to  provide  for  the  prompt  settlement  of 
public  accounts,"  as  follov/s  : 

"  That  it  siiall  be  the  duty  of  the  First  Comptroller  to  examine  all  ac- 
connts  settled  by  the  First  and  Fifth  Auditors,  and  certify  the  balances 
arising  thereon  to  the  Register;  to  countersign  all  warrants  drawn  by 
the  Secretary  of  tlic  Treasury,  which  shall  be  warranted  by  law  ;  to  re- 
port to  the  Secretary  the  otiicial  forms  to  be  issued  in  the  dilTerent  offices 
for  collecting  the  public  revenue,  and  the  manner  and  form  of  stating  the 
accounts  of  the  several  persons  employed  therein  :  he  shall,  also,  superin- 
tend the  preservation  of  the  public  accounts  subject  to  his  revision,  and 
provide  for  the  regular  payment  of  all  moneys  which  may  be  collected." 

By  a  Treasury  circular  issued  by  the  Comptroller  March  1,  1830,  (see 
journal  of  committee)  all  returns  of  accounts  of  collectors  of  the  customs 
were  required  to  be  made,  in  the  first  instance,  to  the  First  Auditor  of 
the  Treasury.  Previously,  they  Avere  sent  direct  to  the  First  Conq)trolIer, 
and  from  liis  office  forwarded  to  the  First  Auditor.  As  has  been  seen  in 
a  previous  division  of  this  report,  the  law  imposes  upon  the  First  Auditor 
the  duty  of  examining  these  accounts,  certifying  tlie  balance,  and  then 
transmitting  them,  ^'  ivith  the  vouchers  and  certificates,  to  the  First  Comp- 
troller for  his  decision  thereoji.^' 

Although  the  jjrovisions  of  law  and  the  duty  of  the  First  Comptroller 
are  thus  explicit,  requiring  him  to  cxqinine  the  accounts  of  collectors  and 
certify  the  balance  thereon,  and  to  do  this  upon  "  vouchers''  required  by 
law  and  Treasury  regulations  to  l)e  transmitted  to  him  l)y  the  First  *^u- 
ditor,  the  evidence  taken  by  the  committee  shows  that,  in  regard  to  Mr. 
Swartwout's  accounts  of  bonds  taken  and  paid,  both  this  law  has  been 
wholly  disregarded,  and  this  duty  wholly  neglected,  by  the  late  and  the 
present  Comptrollers,  from  the  year  1832  down  to  the  period  of  the  dis- 
covery of  Mr.  Swartwout's  immense  defalcations,  in  November,  183S  ; 
and  that,  for  this  whole  period,  these  accounts  have  not  only  passed  the 
Auditor's  olfice  ivithoiit  an  examination  of  the  vouchers  required  by 
law,  but  have  also  been  certified  by,  and  transmitted  from,  the  Comp- 
troller to  the  Register,  icithout  his  seeing  or  having  a  voucher  for  them 


Ec]).  No.  313.  53 

During  tlie  whole  period  mentioned,  the  vonclicrs  transmitted  by  the  col- 
lector have  lain  dead,  useless,  and  untouched  in  the  Auditor's  otiice.  It 
is  in  ike  "  bond  account"  that  a  major  part  of  Mr.  Swartvvout's  inmiense 
defalcation  has  occurred.  The  following  testimony  from  Mr.  Under- 
wood, clerk  in  the  Auditor's  office,  establishes  the  main  fact: 

Mr.  Undertrood  rc-ea'ciniined  by  JMr.  Smith. 

Question  40.  Referring  to  the  act  of  Congress  passed  March  3,  1817, 
entitled  "  An  act  to  provide  for  the  prompt  settlement  of  public  accounts," 
sec.  4,  which  provides  as  follows  : 

"That  it  shall  be  the  duty  of  the  First  Auditor  to  receive  all  accounts 
accruing  in  tlie  Treasury  Department,  and,  after  examination,  to  certify 
the  balance,  and  transmit  the  amounts,  with  the  vouchers  and  certificates, 
to  the  Comptroller,  for  his  decision  thereon." 

Please  to  state  whether,  in  pursuance  of  said  law,  Mr.  Swartwout's 
quarterly  accounts  of  bonds  taken  and  paid  have  been  transmitted  from 
the  First  Auditor  of  i\\e  Treasury  to  the  Comptroller  of  the  Treasury, 
with  the  First  Auditor's  cerlificate  thereon,  at  any  ,time  or  for  any  period 
between  the  fourth  quarter  of  1832  and  the  present  time?  And  if  yea, 
when,  and  to  what  extent  has  it  been  done  ? 

.Answer.  They  have  not,  but  still  remain  in  the  First  Auditor's  office. 

It  was  the  obvious  duty  of  the  Comptroller,  on  receiving  accounts 
from  the  Auditor's  office  vmaccompanied  by  legal  vouchers,  to  re- 
turn them  to  the  Auditor,  and  withhold  his  certificate  until  the  ac- 
counts had  been  ])roperly  examined  there,  and  proper  vouchers  trans- 
mitted with  them.  Had  tliis  been  done  by  either  the  present  Comptroller, 
who  succeeded  to  the  olfice  March  5, 1S3S,  and  had  the  adjustment  of  Mr. 
Swartwout's  accounts  for  the  third  and  fourth  quarters  of  1S37,  as  well 
as  his  last  account,  been  made  ;  or  had  the  same  been  done  by  his  prede- 
cessor, George  IVolf,  Esq.,  now  collector  of  the  customs  at  Philadelphia, 
who  held  the  office  from  the  summer  of  1836  until  Mr.  Barker  succeeded 
to  it,  Mr.  Swartwout's  defalc;ition  could  not  have  occurred.  The  absence 
of  the  voucliers  could  at  once  have  been  explained,  and  its  fatal  cause 
remedied. 

But  it  is  to  be  remarked,  so  ineilicienlly  have  the  duties  of  the 
First  Comptroller's  office  been  administered  of  late  years,  that  no  means 
in  the  shape  of  independent  accounts  or  record  transcripts  have  been  kept 
in  it,  by  which  any  test  could  be  applied  to  the  revenue  returns  of  custom- 
house officers,  or  (o  detect  any  fraud  or  unintentional  errors  in  either  the 
returns  themselves  or  the  settlement  made  of  them  in  the  Auditor's  office, 
if  computation  in  the  figures  be  excepted.  The  office,  as  administered, 
has  been  only  in  contemplation  of  law,  and  not  in  the  execution  of  it,  any 
check  whatever  upon  either  the  First  Auditor  or  collectors.  In  a  word, 
the  certificate  of  the  Comjitroller  has  been  a  fancy  affair  throughout,  for 
years,  thougli  ap])liod  to  tro.nsactions  in  which  annually  millions  of  dol- 
lars may  be  saved  or  lost  to  the  Treasury,  according  as  it  is  efficiently  or 
inefFicienlly  applied.  The  examination  and  testimony  of  the  i>resent 
Comptroller  will  elucidate  and  establish  the  reprefjentation  here  made. 

Question  4.  Has  any  register,  or  book  of  record,  of  tiie  bond  account 
ef  collectors,  been  kept  at  any  time  in  the  Comptroller's  office,  showing 


54  Ecp.  No.  313. 

the  amount  of  each  revenue  hond  taken  by  each  collector,  as  reported  in 
his  quarterly  returns  of  bonds,  and  showing  also  the  date  of  each  bond, 
the  names  of  the  principals  in  eacli,  and  when  each  was  payable  and 
each  was  paid  ?  If  yea,  state  to  what  period  such,  register  or  book  of 
record  has  been  completed,  in  reference  to  bonds  taken,  as  aforesaid,  by 
the  collector  of  the  jiort  of  New  York. 

^insiver.  No  such  register,  or  book  of  record,  of  the  bond  account  of 
collectors,  as  is  referred  to  in  this  interrogatory,  is  now  kept  in  the  Comp- 
troller's olhce ;  n>r  do  I  know  tliat  such  register,  or  book  of  record,  has 
at  any  time  been  kepi  in  that  olrice. 

Queslion  5.  Without  such  book  or  register  as  is  contemplated  by  the 
last  interrogatory  and  your  last  answer,  how  is  it  practicable  for  your 
office  to  detect  any  deficit  or  defalcation  wliich  might  occur  in  collectors' 
accounts  for  any  quarter,  of  bonds  reported  in  a  previous  quarterly  re- 
turn as  falling  due  in  such  subsequent  quarter? 

^'Insiver.  Such  book  or  register  is  understood  to  be  kept  in  the  office  of 
the  First  Auditor,  to  whom  the  quarterly  accounts  of  collectors  are  ren- 
dered ;  and  however  useful  such  additional  check  might  be,  if  kept  in  the 
Comptroller's  office,  it  has  not  heretofore  been  deemed  necessary.  The 
Gomi>troller's  duty  is  to  revise  the  accounts  as  reported  by  the  First 
Auditor,  and,  finding  them  accurately  stated,  to  certify  the  balance  to  the 
Register. 

Quesiio)i  6.  If  the  Comptroller  has  no  record  or  register  by  which  he 
can  check  the  accuracy  of  collectors'  quarterly  returnsof  bonds  taken  and 
paid,  what  record  has  said  officer  by  which  to  check  any  errors  or  neglect 
of  duty  (other  than  relate  to  the  mere  addition  of  figures)  which  Ihe 
*/luditor  of  the  Traasxiry  viay  commit  i:i  relation  to  collectors'  accounts  ? 
Is  the  revision  of  collectors'  accounts  in  the  Comptroller's  office  confined 
wholly  to  sucli  data  as  are  furnished  by  the  First  Auditor  for  the  guide 
of  the  Comptroller  ? 

Answer.  The  Comptroller  is  not  enjoined  by  law  or  Treasury  regula- 
tion to  keep  any  record  such  as  is  mentioned  in  this  interrogatory.  The 
revision  of  the  collectors'  accounts  in  the  Comptroller's  office  is  limited  to 
the  data  as  furnished  by  the  First  Auditor,  with  such  reference  to  the 
laws  or  Treasury  authority,  for  the  allowance  of  credit  given  to  the  col- 
lector, or  charges  against  the  United  States,  as  may  become  necessary  in 
the  progress  of  the  examination. 

Question  7.  Do  you  mean  to  be  understood  by  the  terms  of  your  last 
answer,  that  if  there  are  any  errors  or  deficits  in  the  details  or  items  of  the 
collectors'  (juarterly  accounts,  or  omissions  of  the  collector  to  charge  him- 
R<;lf  with  as  much  cash  receipts  as  he  should,  and  such  a  fact  escapes  de- 
tection in  the  Auditor's  olfice,  the  Comptroller's  office  holds  no  check  upon 
buch  accounts,  independent  of  the  Auditor's  office,  by  which  to  detect 
such  errors,  deficits,  or  omissions  ? 

Answer.  Although  errors  of  computation,  in  details  or  items,  of  the 
collectors'  quarterly  accounts, may  be  corrected  by  the  Comptroller,  he 
possesses  no  means  of  detecting  any  omission  of  the  collector  to  charge 
himself  with  as  nnich  casli  receipts  as  he  should,  or  with  any  other  items. 

Quation  f).  In  your  Gth  answer  you  say,  '-'the  Comptroller  is  not  en- 
joined hy  I'lw  or  Treasury  rc,s;uliition  to  keep  any  record  such  as  is 
mentioned  in^^  the  Gth  interrogatory  to  you,  or  a  record  hy  which  the 
First  Comptroller  can  "check  any  errors  or  neglect  of  duty  (other  than  re- 


Rep.  No.  313.  55 

"late  to  the  mere  addition  of  figures)  which  the  Auditor  of  the  Treasury 
may  commit  in  relation  to  collectors'  accounts." 

liy  tlie  Sth  section  of  the  act  of  March  3,  1817,  of  the  laws  of  the  Uni- 
ted States,  it  is  provided  as  follows : 

"That  it  shall  be  the  duty  of  the  First  Comptroller  to  examine  all  accounts 
settled  by  the  First  and  Fifth  Auditors  and  certify  the  balances  arising 
thereon  to  the  Register;  to  countersign  all  warrants  drawn  by  the  Secre- 
tary of  the  Treasury  which  shall  be  warranted  by  law  ;  to  report  to  the 
Secretary  the  official  forms  to  be  issued  in  the  different  otiices  for  collecting 
the  public  revenue,  and  the  manner  and  form  of  stating  the  accounts  of 
the  several  persons  employed  therein  ;  he  shall  also  superintend  the  pres- 
ervation of  the  public  accounts  subject  to  his  revision,  and  provide  for 
the  regular  payment  of  all  moneys  which  may  be  collected." 

Will  you  refer  to  the  above-quoted  provision  of  law,  and  say  whether 
it  does  not  enjoin  upon  the  Couiptroller  the  duty  and  power  as  fully  to 
keep  in  his  own  office  all  useful  and  necessary  forms  of  stating  and  keep- 
ing accounts,  and  records,  and  checks  upon  other  accounting  officers  whose 
doings  are  subjected  to  the  revision  of  his  office,  as  it  does  to  require  all 
useful  and  necessary  forms,  records,  and  checks  "in  the  different  offices 
for  collecting  the  public  revenue  ?"  And  if  yea,  was  it  or  not  competent 
and  within  his  authority  to  have  instituted,  and  to  keep  in  his  office,  such 
a  record  and  check  as  is  mentioned  in  the  Gth  interrogatory  above  ? 

Jinswcr  The  law  quoted  in  the  last  interrogatory  does  not,  in  my 
opinion,  er)join  upon  the  Comptroller  the  duty  of  keeping  a  record  to 
check  other  accounting  officers,  of  the  description  given  in  the  interroga- 
tory. But  as  the  duty  of  the  Comptroller,  under  the  law,  is  clearly  to 
make  a  due  and  thorough  examination  of  all  accounts  settled  by  the  First 
and  Fifth  Auditors,  before  he  certifies  the  balances  arising  thereon  to  the 
Register,  he  would  by  bound  by  a  sense  of  duty  to  keep  such  record  if  he 
thought  it  essential.  No  Treasury  regulation  by  the  Secretary  or  Comp- 
troller has  heretofore  directed  the  keeping  of  such  records  or  checks  in 
the  Comptroller's  office,  aUhough,  in  my  opinion,  such  record  might  be 
there  kept,  under  existing  laws,  and  by  the  authority  of  the  Comptroller. 

But  it  has  not  been  only  in  regard  to  Mr.  Svvartwout's  accounts  pass- 
ing through  the  otflce  of  the  First  Comptroller,  that  a  signal  disregard  of 
law  and  neglect  of  duty  have  characterized  the  administration  of  that 
office ;  but,  with  seeming  fatality,  Uke  disregard  of  law  and  neglect  of 
every  duty  imposed  by  law  upon  that  office  with  which  Mr.  Swartwout 
was  required  to  come  in  contact,  appears  to  have  pervaded  the  First 
Comptroller's  department. 

By  the  act  of  May  15,  1820,  section  1,  it  is  provided  that  the  com- 
missions of  all  officers  employed  in  levying  or  collecting  the  public  rev- 
enue shall  be  made  out,  and  recorded  in  the  Treasury  Department,  &c. 

By  the  act  of  March  2,  1799,  section  1,  it  is  provided  that  each  col- 
lector shall,  within  three  months  after  he  enters  upon  the  execution  of  his 
otHce;  give  bond,  with  one  or  more  sureties,  to  be  approved  by  the  Comp- 
troller of  the  Treasury  of  the  United  States,  and  payable  to  the  United 
States,  Yv^ith  condition  for  the  true  and  faithful  discharge  of  the  duties 
■of  his  office  accordina;  to  law. 

By  the  act  of  May  15,  1820,  section  3,  the  President  may,  from  time 
to  time,  as  in  his  opinion  the  interests  of  the  United  States  may  require, 
regulate  and  increase  the  sums  for  which  the  bonds  required  or  which 


56  Rep.  No.  313. 

may  be  required  by  the  laws  of  the  United  Slates,  to  be  given  by  the 
collector,  naval  officer,  &c.  of  customs,  &c. 

It  appears,  iii  proof,  tiiat  a  record  thus  required  by  law  has  constituted 
a  part  of  the  internal  organization  of  the  First  Conq)troller's  odice.  Its 
importance  would  be  obvious,  independent  of  the  positive  requisition  of 
law.  It  appears,  also,  in  proof,  that  a  blank  bond  for  Mr.  Swartwoul's 
execution,  with  sureties,  as  required  by  law,  to  indemnify  the  Govern- 
ment against  his  unfaithful  discharge  of  duties,  was  transmitted  to  him, 
whh  a  notice  of  his  reappointment  to  oilier, on  the  3d  of  May,  1834,  by 
the  Fn-st  Comptroller.  But  it  is  in  proof  that  with  that  act  all  further  atten- 
tion in  rL'lalion  to  Mr.  Sv/artwout's  bond,  and  to  the  record  of  it  required 
by  hiw,  ceased,  ou  the  part  of  the  Comptroller,  until  an  accident,  in  1837, 
which  owed  its  existence  to  a  like  neglect  of  law  and  duty  by  the  Comp- 
troller in  relation  to  another  collector,  betrayed  the  fact  that  Mr.  Swart- 
wont  was,  and  iiadbeen  from  his  reappointment,  in  office  without  havmg 
furnished  any  bond. 

In  House  Doc.  No.  69,  being  a  report  of  the  First  Comptroller  to  the 
Secretary  of  the  Treasury,  and  transmitted  to  tiie  House  in  reply  to  a  spe- 
cial call  upon  the  Secretary,  the  Comptroller  says:  "  I  learn,  fro)n  the 
gentleman  now  having  charge  of  this  branch  of  the  duties  of  this  olfice, 
'(to  which  he  was  assigned  on  the  resignation  of  the  clerk  having  had  this 
desk  in  the  year  1835,)  that  the  neglect  of  Mr.  Swartwout  to  render  this 
bond  was  accidentally  discovered  hy  him  in  January,  1837,  in  complying- 
with  youriiistr  ictions  of  the  loth  October,  1835,  in  which  it  is  made  the 
duty  of  the  Comptroller  to  advise  the  sarclics  on  tjie  bonds  of  collectors 
who  neglect  to  render  their  quarterly  accounts  in  due  time." 

George  JVood,  a  clerk  in  the  Treasury  Department,  was  sworn  as  a 
witness. 

Examined  by  Mr.  Smith. 

Quest  ion  1.  What  office  do  you  hold  in  the  Treasury  Department;  and 
how  long  have  you  been  in  said  office  ? 

*.^nswer.  I  am  a  clerk  of  tiie  Comptroller's  office;  and  my  duties  con- 
sist of  correspondence  with  the  officers  of  the  customs  relating  to  their 
accounts  and  bonds,  &.c.  I  was  appointed  in  the  office  in  1833,  and  took 
charge  of  the  duties  now  assigned  me  in  the  year  1835. 

Question  3.  Did  you  find  on  record  in  your  office  any  statement  or 
memorandum  indicating  that  Mr.  Swartwoul's  bond  had  ever  been  for- 
warded to  him  for  execution  ? 

Jlnsiuer.  I  did  not  at  the  time  look  in  the  record  of  correspondence  to 
see  if  such  a  bond  had  been  sent ;  but  that  it  was  duly  sent  is  shown  by 
the  handwriting  in  the  bond,  which  was  written  by  my  predecessor  in  this 
clerkship.     This  could  be  shown  by  a  reference  to  the  records. 

Sincti  writing  the  above,  I  find,  by  a  reference  to  the  records,  that  a 
letter  was  addressed  to  Mr.  Swartwout  on  the  3d  May,  1834,  notifying 
him  of  his  ajqiointment,  and  sending  to  him  a  l)lank  bond  and  oath,  which 
lie  was  instructed  to  transmit,  when  taken  and  executed,  to  the  office, 
with  the  certificate  of  the  district  attorney  touching  the  sufficiency  of  his 
sureties,  for  the  approbation  of  the  Comptroller. 

Question  4.  Have  you,  or  not,  in  the  ComjJtroUer's  office,  a  record-book 
to  show  what  bonds  have  been  sent  in  blank  to  collectors  for  execution; 
what  bonds  have  been  properly  executed;  and  other  particulars,  to  ena- 
ble the  office  to  check  any  neglect  that  may  occur  in  a  collector  to  trans- 


Kep.  No.  313.  57 

niit  his  oiTicial  bond?  If  yea,  please  describe  the  character  of  the  entries 
in  such  record,  and  whether  any  cMtry  whatever  wtte  made  therein  re- 
specting Mr.  Swartwout's  bond,  until  after  your  discovery  of  his  remain- 
ing in  ollice  without  bond,  in  1837. 

»jinswer.  There  is,  in  the  office  of  the  Comptroller,  a  book  which  has 
this  caption:  "Record  of  official  bonds  received  from  the  following 
officers;"  which  is  ruled  and  headed  as  follows: 


Name. 


Office. 


District. 


Port.         Date  of  commission. 


Bond  when  received. 


All  commissions  to  collectors  pass  through  the  Comptroller's  office.  On 
the  reception  of  a  commission  from  the  office  of  the  Secretary  of  the 
Treasury,  a  letter  is  addressed  to  the  person  appointed,  notifying  him  of 
his  appointment,  enclosing  to  him  a  blank  bond  and  oath  of  office  ;  and 
an  entry  is  then  made  in  this  record  ;  and  when  the  bond  is  received,  the 
date  of  its  receipt  is  entered.  If  no  bond  is  received  within  the  time  pre- 
scribed by  law,  he  is  written  to,  informing  him  that  his  bond  was  not 
received,  and  requesting  its  immediate  transmission;  if  not  received  in  a 
reasonable  time  thereafter,  tlie  Secretary  of  the  Treasury  is  advised  of  the 
fact.  On  looking  over  thi.>-  record,  any  failure  to  forward  a  bond  is  read- 
ily seen;  but,  in  the  case  of  Samuel  Swan  wont,  no  entry  of  his  appoint- 
ment or  of  the  receipt  of  his  bond  was  made  by  my  predecessor. 

Question  2.  In  reference  to  what  particular  bond  in  January,  1837,  did 
the  compUance  with  the  instructions  of  the  Secretary  of  the  Treasury, 
dated  the  16th  of  October,  1835,  accidentaUy  lead  to  the  discovery  that 
Mr.  Swartwout  had  neglected,  from  the  time  of  his  af)pointment,  in  1834, 
until  1837,  to  render  the  bond  required  of  him  by  law  to  be  rendered,  for 
the  faithful  discharge  of  his  duties  as  collector  ?  Please  explain  the  cir- 
cumstances of  the  discovery  in  detail. 

Answer.  On  the  4th  of  January,  1837,  the  Auditor  addressed  to  the 
Comptroller  a  letter,  reporting  that  the  accounts  of  the  customs  had  not 
been  received  at  his  office  for  the  third  quarter  of  the  year  1S3G,  from  the 
following  collectors,  viz  :  Duncan  McDonald,  collector  at  Edenton;  Levi 
Fagin,  collector  at  Plymouth;  William  H.  Hunter,  collector  at  Sandu>ky; 
and  John  Smith,  surveyor  at  St.  Louis.  This  letter  was  referred  to  me, 
to  notify  the  sureties  of  said  collectors  of  their  neglect  of  duty,  in  compli- 
ance with  the  instructions  of  the  Secretary.  On  referring  to  the  files  for 
the  bonds,  I  could  not  find  the  bond  of  William  II.  Hunter.  This  was 
the  first  case  which  had  ever  occurred  to  me  of  a  bond  mislaid  or  lost.  I 
was  thereupon  induced  to  examine  the  files  for  the  bonds  of  all  the  col- 
lectors in  office ;  when  Mr.  Swartwout's  neglect  to  render  his  bond  was 
discovered.  I  immediately  reported  the  fact  to  Mr.  Lanb,  the  chief  clerk; 
and,  at  his  suggestion,  draughted  the  letter  addressed  to  him  by  Governor 
Wolf,  dated  the  9th  of  January,  1837.  The  next  day  (after  the  letter 
was  sent)  Mr.  Swartwout  came  to  Washington,  and  saw  Mr.  Laub,  in  my 
presence.  He  expressed  his  surprise  that  the  bond  had  not  been  sent, 
and  said  he  would,  on  his  return,  send  his  bond;  which  was  received  on 
the  23d  of  January,  1837. 

The  circumstances  under  which  Mr.  Swartwout  availed  himself  of  this 
neglect  of  the  Comptroller,  are  detailed  in  the  following  testimony: 


58  Rep.  No.  313. 

Henry  Ogden  was  sworn  as  a  witness. 

Examined  by  Mr.  Curtis. 

Question  1.  Were  you  cashier  of  the  custom-house  of  New  York  du- 
ring the  whole  term  of  Mr.  Swartwout  ? 

x/inswer.  I  was,  during  the  whole  term  of  his  office. 

Question  2.  WJio  were  tiie  sureties  of  Mr.  Swartwout  during  the  first 
term?    I  mean  during  ilie  first  four  years  he  iield  the  office  of  collector. 

^^nswer.  Cadwallader  D.  Collcn,  Henry  Eckford,  Silas  K.  Burrows, 
M.  M.  Quackenbos,  Benjamin  Birdsull,  and  Charles  L.  Livingston,  were 
ihe  sureties. 

Question  3.  State  all  you  know  concerning  the  execution,  approval, 
and  delivery  of  the  official  bonds  of  Mr.  Swartwout,  both  for  his  first, 
and,  also,  for  his  second  term  of  office. 

^^nsu'er.  Tlie  first  bond  was  not  considered  as  good  and  sufficient  secu- 
rity by  John  Uuer,  Esq.,  then  the  district  attorney,  until  Mr.  Burrows 
certified  that  he  was  worth  fifty  thousand  dollars.  It  was  then  approved, 
and  Mr.  Swartwout  entered  upon  his  duties. 

The  second  bond  was  executed  by  Charles  L.  Livingston,  M.  M. 
Quackenbos,  and  Benjamin  Birdsall.  It  had  five  or  six  seals  to  it,  but 
no  other  person  to  my  knowledge  executed  it.  This  bond  remained  in  a 
trunk  wliich  contained  all  valuable  papers,  which  was  daily  deposited  in 
the  bank  after  the  closing  of  the  office.  The  bond  remained  unexecuted 
until  towards  the  close  of  1S36,  and,  as  far  as  I  can  recollect,  I  handed  it 
to  Mr.  Swartwout  soon  after  or  the  commencement  of  1837. 

Question  4.  Was  the  last-mentioned  bond  sent  from  the  Treasury  De- 
partment at  Washhigton  to  New  York  to  be  executed,  or  was  it  prepared 
at  New  York  ? 

Answer.  The  last  bond  was  transmitted  from  Washington  to  be  exe- 
cuted. 

Question  5.  When  was  this  bond  transmitted  from  Washington  to  New 
York  for  execution  ? 

*^^nsiver.  Soon  after  the  reappointment  of  Mr.  Swartwout. 

Question  6.  State,  if  you  know,  why  its  execution  and  delivery  wag 
delayed  so  long  ? 

JInswer.  The  bond  remained  imexecuted  because  I  declined  asking  the 
gentlemen  who  afterwards  executed  it  to  become  security  for  Mr.  Swart- 
wout. Believing  Mr.  Swartwout  to  be  indebted  to  the  Government,  I  re- 
fused to  a})ply  to  those  gentlemen,  but  urged  upon  Mr.  Swartwout  to  pay 
up  his  deficiency  by  a  sale  of  his  property.  Mr.  Swartwout  himself 
spoke  to  the  gentlemen  who  became  his  securities,  and  they  applied  to 
me  for  the  bond  to  execute.  An  elapse  of  six  to  nine  months  occurred, 
between  (he  signing  of  the  first  and  the  last  person  on  the  bond. 

Question  7.  How  much  did  you  consider  Mr.  Swartwout  indebted  to 
the  Government  when  you  declined  to  ask  gentlemen  to  sign  the  bond  as 
sureties  ? 

Jinswcr.  I  considered  Mr.  Swartwout  indebted  to  the  Government 
from  thirty  to  fifty  thousand  dollars. 

Question  8.  When  was  it  that  you  declined  to  ask  gentlemen  to  sign 
the  bond  for  the  reason  you  have  mentioned. 

Ansioer.  It  M'as  1634,  and  after  that  year,  that  I  declined  asking  the 
gentlemen.     1  licld  the  bond  about  three  years  before  I  handed  it  to  Mr* 


Rep.  No.  313.  59 

Swartwout  to  deliver  to  Mr.  Price,  tlie  United  States  district  attorney.     It 
was  tlien  executed. 

No  palliation  of  such  negligence  has  been  seen  or  offered  in  any  cn-- 
cumstance  or  proof  that  has  come  to  the  knowledge  of  the  committee;  and, 
indeed,  it  seems  to  be  a  case  which,  from  its  nature,  admits  of  no  pallia- 
tion. It  is,  moreover,  obvious  that  when  Mr.  Swartwout's  bond  was 
finally  received,  no  comparison  of  it  was  instituted  with  his  former  one, 
or  other  information  sought  respecting  it,  beyond  the  certificate  of  the  dis- 
trict attorney,  to  secure  to  it  the  approval  of  the  Comptroller.  It  is  not  diffi- 
cult to  suppose  that  the  Dep^irtment  felt  inclined  to  compromise  with  an 
apparent  insufficiency  of  the  bond,  rather  than  to  excite  an  inquiry  that 
would  probably  lead  to  an  exposure  of  its  own  culpable  negligence  in 
regard  to  it.  Had  it,  however,  been  compared  with  the  former  bond,  it 
must  have  been  discovered  that,  while  on  the  former  six  sureties  were 
given,  on  the  latter  only  ha/f  that  number  had  been  furnished.  One 
would  suppose  that  such  a  comparison,  in  the  exercise  of  due  diligence, 
Avould  have  been  instituted  ;  and,  if  instituted,  such  a  falling  off  of  sureties 
would  have  called  for  explanation.  Had  explanation  been  sought,  it  is  ap- 
parent that  the  three  sureties  actually  furnislied  would  not  have  been  found 
entitled  to  the  approval  of  the  bond  by  the  Comptroller,  as  the  bond  was 
to  serve  as  the  whole  reUance  of  the  Government  for  indemnity  against 
a  faithless  discharge  of  duty  by  a  collector  through  whose  hands  and  under 
whose  control  nearly  two-thirds  of  the  whole  revenue  of  the  Government 
must  pass.  The  following  additional  testimony  from  Mr.  Ogden  warrants 
the  conclusions  thus  drawn  : 

Examined  by  Mr.  Wise. 

Question  40.  Were  the  three  securities  to  the  last  bond  of  Mr.  Swart- 
wout equal  in  point  of  wealth  and  responsibility  to  the  three  who  were 
their  co-securities  on  his  first  bond  ;  if  not,  what  was  the  probable  differ- 
ence ?  * 

Answer.  The  sureties  in  the  last  bond,  in  point  of  wealth  and  respon- 
sibilty,bore  no  comparison  to  the  first.  The  only  person  of  actual  wealth 
on  the  last  bond  was  Mr.  Quackenbos,  who  was  estimated,  I  believe, 
worth  from  fifty  to  seventy-five  thousand  dollars.  Mr.  Birdsall  I  never 
considered  worth  over  g  10,000  ;  and  Mr.  Livingston  has  nothing.  Those 
on  the  other  bond  were  much  more  wealthy.  Mr.  Eckford  died  worth 
nearly  half  a  million  of  dollars  Mr.  Barrows  qualified  upon  signing  the 
bond  that  he  was  worth  S50,000.  Mr.  Colden  when  he  died  left  but  Ut- 
tle,  though  at  the  time  he  executed  the  bond  he  was  estimated  at  over 
1^50,000.^ 

There  is  yet  another  feature  of  extraordinary  disregard  of  the  require- 
ments of  law  and  neglect  of  duty  of  still' later  date  on  the  part  of  the 
Comptroller  towards  Mr.  Swartwout's  accounts. 

By  the  act  o(  January  31,  1823,  sec.  3,  it  is  required  that  every  ofHcei 
or  agent  of  the  United  States  who  shall  receive  public  money,  which  he 
is  not  authorized  to  retain  as  salary,  pay,  or  emolument,  shall  render  his 
accounts  quarter-yearly  to  the  proper  accounting  officers  of  the  Treasury, 
with  vouchers  necessary  to  the  correct  and  prompt  settlement  thereof. 


60  «ep.  No.  313. 

xcithin  three  months  at  least  after  the  expiration  of  each  successive 
quartcr,,[i' rvi^ident  within  the  United  States.  , 

By  the  act  of  March  2,  1799,  sec.  21,  every  collector,  naval  ofilcer,  &.C., 
who  shall  refuse  to  render  his  accounts  for  settlement  for  the  term  of  tliree 
months  after  ihcy  have  been  required  by  the  proper  officer,  is  subject  to 
fine,  &r. 

By  act  of  Marcli  3,  1795,  sec.  3,  it  is  provided  that  if  any  collector  of 
the  revenue,  &.C.,  who  shall  have  received  the  public  money  before  it  has 
been  paid  into  the  Treasury,  shall  fail  to  render  his  account  or  pay  over 
the  same  in  the  manner  or  within  the  time  required  by  law,  it  shall  be 
the  duty  of  the  First  Comptroller  to  cause  'to  be  stated  the  account  of 
such  collector,  «§r.,  exhibiting  truly  the  amount  due  to  the  United 
States,  and  cerlil'y  the  same  to  the  ligent  [Solicitor]  of  the  Treasury,  Avho 
shall  issue  a  warrant  of  distreiis  against  .such  delinquent  officer  and  his 
sureties,  &.c. 

It  ai)pears  by  the  certificate  of  the  Comptroller  (in  committee  journal) 
that  the  third  quarter  of  Mr.  Swartwoui's  account  for  1S37  was  settled  at 
the  Comptroller's  office  on  the  8th  of  JSIay,  1S3S,  and  a  balance  found  due 
from  him  of  §10,207,224   10,  as  follows  :" 

Bonds  not  due     ------  ^^7,246,207  91 

Bonds  in  suit       -.--._  2,196,364   62 

Deposite  bonds   -             -             -             -          '  -             -  45,851   73 

Cash,  including  sundry  items  not  to  his  credit     -             -  7-o8,799  84 


^10,227,224    10 


It  appears  that  his  fourth  quarter  for  1S37  was  adjusted  at  the  Treas- 
ury on  the  21st  of  June,  1838,  and  a  balance  found  due  the  Government 
of  ^9,678,984  56,  as  follows: 
Bonds  not  due    ------     i56,777,101   55 

Deposite  bonds    ------  23,864  12 

Bonds  in  suit       ------       2,231^20  55 

Cash  on  liand,  including  sundry  items  not  yet  to  his  credit  646,698  34 

^9,678,984  56 

In  the  examination  of  Mr.  Barker,  (the  Comptroller,)  by  Mr.  Smith,  he 
says,  in  reply  to — 

Question  12.  At  what  date  did  the-time  allowed  by  law  for  Mr.  Swart- 
wont  to  render  his  accounts  to  the  First  Auditor,  ibr  his  quarter  ending 
March  28,  183S,  expire  ? 

».lnstrer.  The  accounts  were  due  on  the  1st  .Tuly,  according  to  law.  I 
am  intormed,  in  the  First  Auditor's  office,  that  the  coUector  of  the  port  of 
New  York  has,  by  a  former  Secretary  of  the  Treasury,  been  allowed  one 
or  two  weeks  in  addition,  within  which  to  render  his  accounts. 

And,  in  examination  by  Mr.  Foster,  he  says,  in  "reply  to — 

Question  18.  Did  you,  at  any  time  previous  to  November  last,  inform 
the  Socrelary  of  the  Trea.sury  tliat  Mr.  Swartwout  was  a  defaulter  ;  or  did 
yon  know  or  su^jject  that  he  was  a  defaulter,  or  that  his  accounts  were 
fraudidently  niade  out,  until  about  the  1. 1  of  November  lust  ? 

•Answer.  1  knew,  in  April,  1838,  that  Mr.  Sw?rtwout  held  in  his  hands 


Sep.  ^0.  313.  61 

the  sum  of  about  ^201,000,  which  he  refused  or  neglected  to  pay.  In  no 
other  particular  was  I  acquainted  with  any  dcfiult  of  Mr.  Swartwout,  until 
about  the  1st  of  November  last. 

Queslion  19.  Did  not  Mr.  Swartwout  cl^^im  that  iie  was  entitled  to  re- 
tain the  sS201,000  mfnitioned  in  yourhjst  answer,  in  order  to  enable  him 
to  pay  the  claims  whicli  he  alleges  the  merchants  had  against  him  as  col- 
lector } 

t^nsiver.  lie  did. 

Question  20.  Were  you  not  aware  that  Mr.  Swartwout  was  liable  to 
refund  money  to  merchants,  in  some  instances,  when  the  same  had  been, 
received  under  protest ;  and  wlien  he  explained  the  reason  why  lie  re- 
tained the  $201,000,  did  you  not  suppose  that  tliat  sum  was  all  he  had 
upon  which  the  Government  had  any  claim  ;  and  had  you  any  reason 
then  to  believe  that  he  would  not  pay  over  to  the  Treasurer  so  much 
thereof  as  should  remain,  after  repaying  to  the  merchants  the  amount  of 
their  legal  claims  upon  him  ? 

*/inswe7\  I  was  aware  that  Mr.  Swartwout  might  be  liable  to  refund 
money  to  merchants,  for  duties  paid  on  protest.  I  had  not,  at  that  time, 
any  means  of  forming  an  opinion  as  to  his  intention  or  ability  to  pay  over 
to  the  Treasurer  so  much  of  the  >^20 1,000  referred  to,  as  should  remain 
after  repaying  to  the  merchants  the  amount  of  their  legal  claims  upon 
him. 

At  the  time  the  correspondence  took  place  between  the  Department  and 
Mr.  Swartwout,  his  accounls  not  being  finally  adjusted,  I  had  no  means 
of  knowing  or  forming  an  opinion  as  to  the  sum  which  might  eventually 
be  due  from  him  to  the  Government. 

The  manner  in  which  the  fact  stated  in  the  above  testimony  came  to 
the  knowledge  of  the  Comptroller,  in  April,  appears  from  the  foUovv^ing 
correspondence  : 

Treasury  Department,  April  16,  1838. 
Sir  :  You  will  perceive,  by  the  enclosed  copy  of  a  letter  addressed  to 
the  Department  by  Samuel  Swartwout,  Esq.,  late  collector  of  the  district 
of  New  York,  under  date  of  the  13th  instant,  that  he  has  in  his  hands  a 
balance  of  public  money  amounting  to  ^201,096  40,  which  he  holds  until 
his  accounts  shall  have  been  adjusted. 

I  will  thank  you,  therefore,  to  take  all  proper  steps  to  have  his  accounts 
adjusted  and  settled  at  as  early  a  period  as  may  be  practicable,  and  to 
have  the  balance  not  in  dispute,  or  to  cover  what  is  in  dispute,  soon  as- 
certained and  paid  over.     I  am,  Sec. 

LEVI  WOODBURY, 
Secretai^y  of  the.  Treasury. 
James  N.  Barker,  Esq., 

Comptroller  of  Hie  Treasury. 

Tlie  letter  from  Mr.  Swartwout  to  Mr.  Woodbury  (enclosed  in  the  above 
letter)  is  as  follows  : 

CusTOM-iiousE,  New  York, 

Spril  13,  1838. 
Sir  :  Herewith  you  will  receive  the  return  of  moneys  received  and  paid 
at  this  office,  for  the  last  three  days  of  my  official  term. 


62  Rep.  No.  313. 

By  it  you  will  observe  there  is  a  balance  due  the  United  States  of 
$201,096  10.  This  sum  I  hold  in  deposite  in  bank  to  my  order,  subject 
to  the  settlement  of  my  account,  and  the  decision  of  sundry  suits  at  law 
brought  against  me  to  recover  duties  wrongfuHy  exacted,  (as  is  alleged,) 
and  which  are  now  pending  in  the  courts. 

On  the  adjustment  of  my  accounts,  the  amount  due  to  the  Government 
will  be  immediately  paid. 

I  have  the  honor,  &c., 

SAMUEL  SWARTWOUT,  late  CoWr. 
ilon.  Levi  Woodbury, 

Secretary  of  the  Treasury. 

The  steps  taken  by  Mr.  Barker,  on  the  receipt  of  the  preceding  letters, 
appear  from  the  following  letter  : 

Treasury  Department, 

Comjjt roller's  Office,  ,'lpril  17,  1838. 

Sir:  I  have  the  honor  to  enclose  a  copy  of  a  letter  received  this  day 
from  the  honorable  Secretary  of  the  Treasury,  requesting  an  early  settle- 
ment of  the  accounts  of  the  late  collector  at  New  York. 
With  great  respect,  your  obedient  servant, 

J.  N.  BARKER,  Comptroller. 
Hon.  Jesse  Miller, 

First  Auditor  of  the  Treasury. 

To  Mr.  Swart.wout  the  Comptroller  wrote  as  follows: 

Treasury  Depaiitment, 
Comptroller's  Office,  April  17,  1838. 

Sir:  In  order  to  a  compliance,  on  the  part  of  the  Treasury,  with  a  re- 
quest contained  in  your  letter  of  the  13th  instant,  for  an  early  settlement 
of  your  accounts,  you  will  please  to  transmit  to  the  First  Auditor  your  ac- 
counts up  to  the  date  of  the  transfer  of  your  books  to  your  successor. 

The  accounts  of  the  third  quarter  are  in  progress  of  revision  in  this 
office,  andlhosc  of  the  fourth  quarter,  1S37,  are  now  in  hand  in  the  oflice 
of  the  Auditor. 

Very  respeclfullv,  your  obedient  servant, 

J.  N.  BARKER,  Comptroller. 

Samuel  Swautwout,  Esq., 

Late  collector,  New  York.  ^ 

Another  letter  was  received  by  the  Conq)lrollcr,  as  follows: 

Treasury  Department,  .'7y?ri7  18,  1838. 

Sir:  Accompanying  my  letter  of  yesterday,  urging  an  early  adjustment 
of  the  accounts  of  Samuel  Swartwout,  Esq.,  late  collector  of  New  York,  I 
transmitted  a  copy  of  a  letter  from  I'.iu),  staling  his  reasons  for  retaining  in 
his  hands  the  large  balance  of  puhlic  moneys  mentioned.  One  reason  he 
declared  to  be,  with  the  view  to  await  "the  decision  of  sundry  suits  at 
law  brought  against  me  [him]  to  recover  duties  wrongfully  exacted,  as  is 
alleged,  and  wliich  are  now  pending  in  the  courts.*' 

To  expedite  matters  in  this  case,  I  will  thank  you  to  call  upon  the  So- 


Rep.  No.  313.  63 

licitor  of  the  Treasury,  to  obtain  from  the  district  attorney  in  New  York 
a  list  of  the  suits  now  pending  against  Mr.  Swartwout,  as  late  collector, 
together  with  the  amount  of  money  involved  in  each,  and  the  probable 
termination  of  them. 

I  am,  &c. 

L.  WOODBURY, 
James  N.  Barker,  Esq.,  Secretary  of  the  Trcasui^y. 

Comptroller  of  the  Treasury. 

On  the  same  day  the  Comptroller  forwarded  the  last  preceding  letter  to 
the  Solicitor,  endorsed  as  follows  : 

Respectfully  referred  to  the  Solicitor  of  the  Treasury,  who  will  be 
pleased,  after  addressing  the  attorney  on  the  subject,  to  return  this,  and 
Advise  this  office  of  the  result  of  the  inquiry. 

J.  N.  BARKER. 

Comptroller's  Office,  April  18. 

On  the  23d  of  April,  the  Comptroller  was  written  the  following  addi- 
tional letter  by  the  Secretary  : 

Treasury  Department,  April  23,  1838. 
Sir:  I  herewith  refer  to  you  a  letter, and  enclosures,  just  received  from 
Samuel  Swartwout,  Esq.,  late  collector  of  the  district  of  New  York,  and 
should  be  pleased  to  have  a  report  upon  the  subject  to  which  it  alludes, 
so  soon  as  you  hear  from  the  United  States  district  attorney. 

I  would  suggest  that,  as  the  collector  is  refunding  duties  imposed  on 
(iertain  articles  of  merchandise,  which  were  paid  under  protest  of  the  par- 
ties at  the  time,  it  consequently  becomes  proper  that  Mr,  Swartwout 
should  furnish  Mr.  Hoyt  with  money,  out  of  the  funds  now  in  his  hands, 
to  meet  payments  in  this  class  of  cases,  and  sliould  be  so  instructed. 
I  am,  very  respectfully,  your  obedient  servant, 

LEVI  WOODBURY, 
James  N.  Barker,  Esq.,  Secretary  of  the  Treasury. 

Comp tr oiler,  IVash ingto n. 

The  letter  thus  enclosed  by  the  Secretary  from  Mr.  Swartwout  was  as 
follows  : 

New  York,  April  21,  1S3S. 

Sir  :  I  have  the  honor  to  state,  in  reply  to  your  letter  of  the  16th  in- 
stant, that,  although  the  balance  in  my  hands  appears  to  be  very  large,  it 
will  not  be  more  than  sullicient  for  the  settlement  of  the  outstanding  claims 
upon  me.  I  enclose  a  letter  received  yesterday  from  the  district  attorney, 
showing  my  individual  liability  for  the  judgments  obtained  against  me.  I 
received  notice  from  Mr.  Lord  yesterday  that  he  would  issue  execution 
against  my  furniture,  unless  I  paid  the  amount  of  the  several  judgments 
forthwith.  I  paid,  of  course.  The  next  court  will  pass  upon  twice  as 
large  an  amount. 

The  notices  of  protest  served  upon  me  for  duties  paid  and  passed  to  the 
credit  of  the  Treasury,  are  estimated  at  between  $200,000  and  J?300,000, 
and  the  circuit  court  decided  that  the  collector,  being  alone  liable,  ought 
•not  to  pay  the  duties  into  the  Treasury.     In  addition  to  these  immense 


64  Hep.  No.  313. 

liabilities,  (li(3  settlement  of  damages,  when  the  parties  have  paid  full  duties 
on  damage  d  goods,  which  cannot  be  adjusted  by  the  prcsLMit  collector, 
must  take  a  large  sum,  and  canuot  all  be  brought  in  under  three  months. 
I  hope,  therefore,  that  you  will  not  consider  the  present  balance  in  my 
hands  at  all  unreasonable. 

I  am,  kc. 

SAMUEL  SWARTWOUT. 
Hon.  Levi  Woodbuky, 

Secretary  of  the  Treasury ,  fFashington. 

Upon  the  receipt  of  the  foregoing,  the  Comptroller  addressed  Mr.  Swart- 
wout  as  follows  : 

Treasury  Department, 
Comptroller's  Office,  *^pril  2A,  1838. 
Sir  :  The  Secretary  of  the  Treasury  has  referred  to  me  your  letter  of 
the  21st  instant,  explanatory  of  the  large  balance  of  public  moneys  re- 
tained in  your  hands. 

Your  successor  having  been  instructed  to  refund  duties  on  certain  ar- 
ticles of  merchandise  imposed,  and  paid  by  the  xxw'poYicrs.  iii^der protest 
at  the  time,  it  is  necessary  that  you  should  furnish  him  with  funds  to  meet 
the  payments  in  this  class  of  cases. 

This  direction  is  given  at  the  instance  of  tlie  Secretary  of  the  Treasury. 
I  am,  very  respectfully,  your  most  obedient  servant, 

.J.  N.  BARKER,  Comptroller. 
Samuel  Swartwout,  Esq., 

Late  Collector,  New  York. 

In  reply  to  the  Comptroller's  endorsement  to  the  Solichor  of  the  Secre- 
tary's letter  of  the  18th  of  April,  given  in  the  preceding,  the  Solicitor 
wrote  to  the  Comptroller  as  follows : 

Office  of  the  Solicitor  of  the  Treasury, 

April  21,  1838. 

Sir  :  I  have  had  the  honor  to  receive  the  letter  of  the  Secretary  of  the 

Treasury  to  you,  dated  the  ISth  instant,  and  referred  by  you  to  this  oilice. 

I  transmitted  a  copy  of  it  to  the  attorney  of  the  United  States  for  the 

southern  district  of  i\ew  York,  and  have  received  a  reply,  dated  25th 

instant,  of  which  I  send  a  copy  herewith. 

On  receiving  the  further  report  to  which  Mr.  Price  refers,  it  shall  bo 
communicated  to  you. 

Very  respectfully,  yours,  &.c. 

IL  I).  GILPIN, 
Solicitor  of  the  Treasury. 
To  J.  N.  liAKKER,  Esq., 

Comptroller  of  the  Treasury. 

The  letter  thus  enclosed  by  the  Solicitor  is  as  follows: 

Umtei)  States  District  Attorney's  Office, 

New  York,  April  25,  1838. 
Sir:  I  have  the  honor  to  acknowledge  the  receipt  of  your  letter  of  the 
19th  instant,  enclosing  a  copy  of  a  letter  addressed  by  the  Secretary  of 
the  Treasury  to  James  N.  Barker,  E.sq.,  Comptroller,  and  by  the  latter 


Rep.  No.  313.  65 

gentleman  communicated  to  your  office,  calling  for  a  statement  of  suits 
now  pending  in  this  district  against  Sanuiol  Svvartwout,  Esq.,  late  collect- 
or of  the  port  of  New  York,  to  recover  duties  levied  by  him,  which  are 
alleged  to  have  been  wrongfully  exacted,  together  '''with  the  amount  of 
money  in  each  case,  and  the  probable  termiuation  of  them." 

By  reference  to  my  register,  I  find  that  there  are  at  present  but  two 
suits  pending,  undecided.  One  brought  by  Robert  Deidericks,  to  recover 
the  value  of  a  package  of  goods  sent  to  the  ])ublic  store  for  examination^ 
and  there  lost  or  mislaid.  In  this  case  the  damages  are  laid  at  J§2,000, 
though  the  recovery  will  not  probably  exceed  half  that  sum.  The  plain- 
tiii'  will  certainly  prevail. 

In  the  other  suit,  Lee,  Savage,  &:  Co.,  are  plaintiffs,  who  claim  to  re- 
cover Si 58  SO,  being  an  excess  of  duties  charged  at  25  per  cent,  ad  va- 
loreyn,  on  a  case  of  silk  gloves,  which  they  contend  are  free  of  duty. 

At  the  term  of  the  United  States  circuit  court  commencing  on  the  first 
Monday  of  the  present  month,  four  judgments  were  recovered  against 
Mr.  Swartwout :  three  by  John  Charters,  Alexander  Charters,  and  Samuel 
M.  Charters,  and  one  by  Aaron  Thomson,  John  H.  Austen,  and  Thomas 
Cochran  ;  in  the  aggregate  amounting  to  i55,561  63, yet  unsatisfied;  being 
for  an  excess  of  duties  charged  on  certain  linens,  which  were  reported  by 
the  appraisers  as  having  been  died  or  colored,  but  were,  on  the  trials, 
proved  to  have  been  known  in  commerce  as  unbleached  linens. 

I  have  in  my  possession  115  protests  served  on  the  late  collector  by- 
various  merchants  in  this  city,  against  the  payment  of  duties,  giving  him 
notice  that  they  intend  to  commence  suits  to  recover  back  the  amount  of 
duties  thus  paid.  Not  having  sufficient  data,  I  am  unable  to  ascertain 
the  amount  of  duties  involved  in  those  protests ;  nor  can  I  anticipate  with 
certainty  what  v/ill  be  the  result  of  suits  that  may  be  brought,  of  which 
the  importers  have  given  notice. 

The  protests  to  which  I  have  referred  present  a  great  variety  of  ques- 
tions, all  relating  to  excess  of  duties ;  many  claiming  as  high  a  return  as 
5C  per  cent.  ;  others  a  return  of  but  small  per  centage ;  and  others,  again, 
a  reduction  of  duties  in  various  amounts.  On  an  examination  of  the  in- 
voices and  appraisements  at  the  custom-house,  in  reference  to  the  ques- 
tions presented  by  the  protests,  the  amount  of  each  claim  can  be  readily 
ascertained.  I  will  apply  to  the  present  collector  for  such  statement,  and 
transmit  it  to  you  upon  my  receipt  thereof.  It  will,  however,  require 
several  days  to  prepare  such  a  document. 

By  the  protests  it  appears  that  there  are  660  packages  of  linens,  blan- 
kets, silk,  hosiery,  worsted,  and  other  articles,  on  which  a  return  of  duty 
is  claimed. 

As  the  questions  involved  in  many  of  t'le  protests  have  been  adjudica- 
ted, (as,  for  instance,  the  worsted,  linens,  and  silks,)  the  importers  will  of 
course  pursue  their  claims  without  much  delay. 

I  am,  &c. 

WM.  M.  PRICE, 
U.  S.  District  Altorney. 

To  Henry  D.  Gilpin,  Esq., 

Solicitor  of  the  Treasury,  JVushiiigton. 


66  Rep.  No.  313. 

The  next  proceeding  of  the  Comptroller  was  to  address  Mr.  SwartwoiU 
the  following  letter: 

Treasurv  Department, 
Comptroller's  Office,  Jlpril  26,  1838. 
Sib  :  Yon  are  respectfully  requested  to  render  your  accounts  of  the 
customs  to  the  First  Auditor  at  as  early  a  period  as  may  be  practicable. 
Very  respectfully,  your  obedient  servant, 

J.  N.  BARKER,  Comptroller. 
Samuel  Swartwout,  Esq. 

Late  Collector,  New  York. 

With  the  last  letter  ended  all  correspondence  between  the  Comptroller 
and  the  other  departments  of  the  Treasury,  as  also  between  him  and  Mr. 
Swartwout,  on  the  subject  of  either  the  i§201,000  retained  by  him,  or  the 
settlement  of  his  accounts  generally.  The  man  and  his  accounts  seem,  in 
fact,  to  have  been  lost  sight  of  by  the  Comptroller  from  that  period  for 
four  succeeding  months,  and  until  he  received  the  following  letter  from 
the  First  Auditor : 

"    •  '  Treasury  Department, 

First  Auditor's  Office,  .iugnst  31,  1838. 
Sir  :  I  deem  it  proper  to  report  to  you  that  the  accounts  of  the  customs 
for  the  district  of  New  York,  for  the  first  quarter  of  the  present  year,  have 
not  been  received  at  this  olhce.  I  wrote  to  Samuel  Swartwout,  Esq.,  late 
collector  for  that  district,  on  the  13th  instant,  requesting  him  to  forward 
said  accounts  so  soon  as  practicable.  Since  then,  I  have  received  no  com- 
munication from  liim  on  the  subject. 

Very  respectfully,  your  obedient  servant, 

i.  MW.l.llW,  First  Auditor. 
James  N.  Barker,  Esq. 

Comptroller  of  the  Treasury. 

This  admonition,  in  the  course  of  three  days,  roused  the  animation  of 
the  Comptroller's  department  to  notify  Mr.  Swart  wont's  sureties  as 
follows: 

Treasuiiy  Department, 
First  Comptroller's  Offiice,  Scpteml)er  3,  1838. 
Sir  :  In  compliance  with  a  regulation  of  the  Secretary  of  the  Treasury, 
I  have  to  notify  you,  as  one  of  the  sureties  of  Samuel  Swartwout,  late 
collector  at  New  York,  that  he  has  not  rendered  his  accounts  of  the  cus- 
toms for  the  quarter  ending  31.st  March  last. 

Respectfully, 

J.  N.  BARKER,  Comptroller. 
Charles  L.  Livingston,  Esq.,  ^ 
Benjamin  Birdsall,  Esq.,  and  ^  city  of  New  York. 

M.   M.   QlTACKENROS,  Esq.,  ) 

But  again  the  Department  fell  into  a  dead  slumber  relative  to  Mr. 
Swartwout 's  accounts,  from  whicli  it  was  not  awakened  until  in  the  early 
part  of  November,  over  seven  months  after  Mr.  Swartwout  had  retired 


Rep.  No.  313.  67 

from  office,  and  over  four  months  after  the  return  day  of  Mr.  Swartwout's 
last  quarter's  account  had  expired  without  having  been  returned,  and  two 
months  after  liis  sureties  liad  been  notified  of  his  neglect  to  return  and 
settle  his  accounts. 

From  April  until  tlie  31st  of  August,  a  period  of  four  months,  Mr. 
Swartwout,  though  known  to  be  holding  a  large  amount  of  public  money, 
and  no  longer  an  officer  of  Government,  was  not  disturbed  by  even  a  call 
from  the  Comptroller  to  settle,  or  explain  his  neglect  to  settle  his  accounts. 

Yet,  on  the  adjustment  of  tliis  collector's  accounts  in  the  mean  time,  viz: 
June  21,  1838,  for  the  quarter  preceding  his  last  quarter,  the  Comptroller 
knew  the  balance  of  bonds,  cash,  and  unsettled  accounts  against  the  col- 
lector was  nine  millions  six  hundred  thousand  dollars,  and  upwards. 

On  tire  1st  of  July  the  Comptroller  knew,  or  should  have  known,  but 
for  extraordinary  inattention  and  neglect  of  duty,  that  the  time  for  ren- 
dering and  settling  Mr.  Swartwout's  accounts  had  expired;  and  that  by 
the  act  of  March  3,  1795,  it  had  become  his  express  duty  to  cause 
Swartwout's  accounts  to  be  stated,  and  to  issue  a  warrant  against  him  and 
his  sureties. 

But  no  steps  were  taken  by  him  to  even  obtain  any  explanation  or  set- 
tlement of  even  the  acknowledged  balance  of  ^201,000,  which  Swart- 
wout had  reported  as  in  his  hands  unsettled.  He  had  seen  that,  by  all  in- 
formation from  the  district  attorney  at  New  York,  obtained  through  the 
Solicitor  in  April,  only  two  suits  were  pending  against  Swartwout  to  offset 
his  retention  of  the  ^201,000,  and  tliat  in  those  suits  the  aggregate  judg- 
ment would  be  less  than  ^^1,200.  By  the  same  letter  of  the  district  at- 
torney, given  in  the  preceding  correspondence,  and  dated  April  25,  1838, 
was  also  informed  that  "o;z  an  examination  of  the  invoices  and  appraise- 
ments at  the  cnstom-house,  in  reference  to  the  questions  presented  by  the 
protests,  the  amount  of  each  claim  can  be  readily  ascertained,''^  show- 
ing the  precise  aggregate  for  which  Swartwout  had  any  pretensions  for 
retaining  the  i§201,000;  and  yet  no  application  was  made  at  that  early 
day,  or  after  Swartwout's  return-day  of  accounts  had  silently  expired,  on 
the  1st  of  July,  to  obtain  from  tlie  custom-house  invoices  and  appraise- 
ments, the  most  obviously  essential  information.  Why  so  much  active 
bustle  was  made  on  the  part  of  the  Comptroller  in  April,  through  the  Au- 
ditor and  through  the  Solicitor;  and  why,  after  the  results  at  that  early  day, 
pointed  to  information  which'could  "6e  readily  ascertained"  to  solve  all 
pretended  doubts  hanging  over  Mr.  Swartwout's  accounts  then,  of  a  sud- 
den all  exerti(i}is  ceased  and  every  etibrt  was  paralyzed,  to  remain  so  until 
the  last  day  of  August,  and  then  to  be  renewed  but  in  the  faintness  of  a 
spiritless  Ibrm  of  notifying  Swartwout's  sureties,  is  to  the  committee  in- 
explicable, insomuch  that  even  the  conclusion  of  culpable  negligence 
seems  scarcely  to  represent  correctly  the  whole  truth.  p]ven  the  Secreta- 
ry of  the  Treasury  appearsJo  have  felt  sensible  of  the  Comptroller's  ne- 
glect of  law  and  duty.  In  answer  to  question  33  by  Mr.  Curtis,  the  Sec- 
retary says: 

'■^Jlnsiver.  I  considered,  as  before  remarked,  according  to  my  own  im- 
pressions, that  the  Comptroller  might,  under  all  the  circumstances,  be  jus- 
tified in  'a  short  delay.'  By  that  I  supposed  it  would  be  a  delay  long 
enough  to  get  the  further  information,  previously  mentioned,  from  the  dis- 
trict attorney,  as  to  the  amount  of  protests,  &c.,  and  to  decide  whether 
there  was  any  legal  reason  for  waiting  any  longer  than  the  acts  of  Con- 
gress point  oiit,  before  bringing  the  collector's  accounts  to  a  final  settle- 


68  Rep.  No.  313. 

ment,  and  to  a  collection  of  all  not  in  controversy  or  doubt.  On  these  ' 
points  I  supposed  he  would  act  according  to  his  own  sense  of  duty  under 
the  laws,  and  not  expect  any  special  instructions  from  the  Secretary,  as 
none  such  are  required  by  the  laws.  I  h  id  already  given  the  general  di- 
rections, or  made  the  general  request  before  mentioned  ;  not  because  they 
were  required  by  any  acts  of  Congress,  or  were  usual  to  be  given  when 
collectors  quit  oliice,  as  it  is  the  duty  of  the  Comptroller,  in  such  cases,  to 
proceed  to  make  settlements,  and  require  collections  without  such  instruc- 
tions; but  I  gave  them  for  the  reasons  stated,  in  substance,  in  the  special 
report,  viz :  that  the  amount  on  hand,  as  stated  in  the  last  return  of  the 
collector,  appeared  unexpectedly  large;  and  the  explanation  given  in  re- 
spect to  it  by  the  collector  alone,  did  not  seem  to  me  entirely  satisfactory 
without  further  inquiry  into  the  subject  by  the  Comptroller. 

'•I  took  no  further  steps  in  relation  to  the  subject  mysell, as  the  business 
belonged  to  different  officers  of  the  Department :  first,  the  accounting  offi- 
cers, to  ascertain  what  was  due  ;  and  then  the  Solicitor,  through  the  district 
attorney,  to  cause  the  balance  to  be  secured  and  collected  after  the  Comp- 
troller reported  it  to  him  in  conformity  to  the  existing  laws." 

To  say  that  there  was  absence  of  suspicioji  on  the  part  of  tlie  Comp- 
troller in  regard  to  Mr.  Swartwout's  accounts,  appears  to  involve  a  most 
negligent  and  obvious  disregard  of  every  fact  that  transpired  between 
April  and  November,  relative  to  those  accounts.  And,  besides,  want  of  sus- 
picion of  infidelity  in  the  collector's  accounts  could  furnish  no  excuse 
for  a  known  neglect  of  the  law  requiring  their  return  to  the  Department. 
There  must  have  been  not  only  suspicion,  but  actual  knowledge,  by  the 
Comptroller,  from  the  1st  of  July  onwards,  that  the  law  had  been  violated 
in  tiie  non-return  for  settlement  of  this  important  account.  Even  the 
newness  of  the  Comptroller  in  his  office  furnishes  no  apology  in  this  re- 
spect as,  to  take  the  office  of  Comptroller,  he  had  just  left  the  collector- 
ship  of  Philadelphia,  where  the  law  must  have  been  made  familiar  to  him 
enjoining  the  return  for  settlement  within  three  months  of  all  collectors^ 
accounts.  In  whatever  light  viewed,  the  case  exhibits  extraordinary  in- 
efficiency and  neglect  of  duty,  if  not  a  mystery  also,  which  the  connnit- 
tee  have  been  unable  to  solve.  The  law  and  duties  of  this  important  office 
have  not  been  executed  as  the  nation  had  reason  to  expect  and  believe 
they  were;  and  the  public  money  has  consequently  been  unguarded  and 
plundered  with  impunity. 

In  yet  another  aspect,  the  inefficiency  of  tlie  Comptroller's  department, 
as  at  present  administered,  has  been  most  singularly  manifested. 

A  searching  scrutiny  was  made  by  the  Comptroller  and  Solicitor  of  the 
Trea.sury,  at  New  York,  into  the  causes  why  Mr.  Swartwout's  defalca- 
tions escaped  the  immediate  detection  of  the  naval  officer  at  New  York. 
They  found  it  to  bo  altril)utable,  in  tlic  first  instance,  to  the  want  of  a 
proper  execution  of  the  duties  of  that  office,  and  came  to  the  conclusion  that 
new  instructions  were  necessary  to  render  the  office  an  efficient  check 
upon  the  collector's  accounts.  Immediately  thereafter,  on  the  10th  of 
November,  as  soon  as  the  Comptroller  had  returned  to  Washington, 
he  began  to  issue  his  new  instructions,  in  the  shape  of  circulars  to  the 
naval  olficer.  First,  as  wiil  appear  by  reference  to  the  documents  im- 
bodied  in  the  testimony  of  Mr.  (Joe,  deputy  naval  officer  at  New  York, 
(connnittee's  journal,)  the  C(;mptroller  issued  what  was  named  by  him 
*'  Partial  Circular,''^  dated  November  10,  1S38 ;  on  the  same  day  an- 


Rep.  No.  313.  69 

other,  which  he  denominated  •*  Circular.''''  On  the  15th  of  the  same 
month,  he  issued  another,  styled  by  him  '•  Circular  to  naval  officers.'' 
On  the  17lh  he  issued  another,  cahed  "  Supplcinental  circular  to  naval 
officers.-'  On  the  '1th,  and  again  on  the  24th  of  December,  as  will  also 
be  seen,  the  naval  oflicer  wrote  the  Comptroller,  in  effect,  that  his  par- 
tial supplemental  and  other  circulars  were  impracticable,  and  asked  for 
explanations,  &c.  On  the  a7tli,  the  Comptroller  wrote,  in  reply,  that,  "  by 
to-morrow's  mail  yon  will  be  furnished  witli  instructions  as  to  the  manner 
in  which  yon  are  to  proceed,"  &c.  And,  accordingly,  on  the  26th  of  De- 
cember, another  effort  was  made,  nnder  the  caption  of  "  Circular  to  naval 
officers.'''  Whether,  in  the  mean  time,  any  new  light  was  shed  or  not  by 
the  naval  officer  upon  the  Comyitroller's  administration  of  his  office,  in 
the  shape  of  a  new  exposure  of  the  impracticability  and  inapplicability  of 
the  latter  doctmient,  does  not  appear  of  record.  It  appears,  however,  that 
on  the  2d  of  January,  the  Comptroller  wrote  him  a  letter,  in  the  nature  of 
a  suspension  of  the  last  circular,  tints:  "  IJefore  the  arrangements  are  con- 
cluded lor  maku.g  the  examinations  as  directed  in  my  letter  of  the  26th 
ultimo,  it  is  deemed  necessary  by  the  Secretary  of  the  I'reasury  that  yon 
should  make  to  the  Department  some  specific  reconnnendation  in  regard 
to  the  rate  of  increase  proposed  to  be  made  to  the  compensation  of  the 
respective  clerks  who  are  to  be  employed  in  that  duty.  You  will  please, 
therefore,  furnish  nic  with  the  requisite  inforn^ation." 

On  the  1 4th  of  January,  the  naval  officer  infortns  ihe  Comptroller,  in 
regard  to  his  new  theory  of  discharging  the  duties  of  naval  officer,  ira- 
bodied  in  liis  midtiphcity  (tf  circrJars,  &:c.,  as  follows  : 

"■  I  am  of  the  opinion  that  it  will  require  at  least  six  of  the  clerks  in 
the  naval  office  to  discharge  those  extra  duties,  whi'e,  at  the  same  time, 
they  will  be  expected  to  perform  the  ordinary  duties  which  they  have 
been  and  are  now  performing  ;"  and  proposes  the  siim  of  ^§2,000  addi- 
tional compensation. 

On  the  7th  of  February,  in  t!ie  examination  of  the  deputy  naval  officer 
before  the  committee,  with  the  preceding  "partial  circular,"  '•  circular,*' 
"circular  to  naval  officers"  of  December  15,  "supplemental  circular  to 
naval  officers,"  and  "circular  to  naval  officers"  of  December  26,  before 
the  witness,  he  was  interrogated  by  Mr.  Smith,  and  answered  as  follows: 

Question  6.  Under  ?/te  existing  system  of  the  naval  office,  is  the  naval 
officer  enabled  to  determine,  either  what  amount,  of  bonds  have  been 
taken  by  the  collector  for  duties,  in  any  quarter,  or  who  arc  parties  to 
said  bonds,  or  the  dates  of  such  bonds,  or  v/hen  they  are  payable,  or  when 
any  such  bonds  are  paid,  or  whether  the  collector  does  or  not  account 
truly  for  bonds  that  have  been  paid  ? 

*/inswer.  In  answer  to  the  sixth  interrogatory  I  have  to  state,  that  the 
naval  office,  under  its  existing  system,  is  not  enabled  either  to  determine 
what  amount  of  bonds  have  been  taken  by  the  collector  for  duties,  in  any 
quarter,  or  who  are  the  parties  to  said  bonds,  or  the  dates  of  said  bonds, 
or  when  they  are  payable,  or  when  such  bonds  are  paid,  or  whether  tl.'e 
<:ollector  docs  or  does  not  account  truly  for  .-n<."h  bonds. 

Such  recorded  specimens  of  inelficiency  v^'onld  scerri  to  indicate  that? 
whether  the  Comptroller  be  attentive  or  neghgent  to  the  duties  of  his 
office,  the  Government  must  remain  equally  exposed  to  the  frauds  and 
peculations  of  a  dishonest  collector  at  tlie  port  of  New  York.  And  yet 
the  law  of  1799,  defining  the  records  and  checks  upon  the  collector;  whick 


70  Rep.  No.  313. 

shall  be  kept  in  the  naval  oliice  is  so  plain  that  the  Comptroller  himself^ 
when  looking  at  the  law,  and  apart  from  his  own  propose:!  mode  of  ex- 
ecuting it,  was  constrained  to  say  in  his  circular  to  naval  officers  under 
date  of  December  15,  after  reciting  the  language  of  the  law:  "Had  the 
books  designated  above  been  kept,  and  the  quarterly  examinations  and 
comparisons  been  duly  made  by  the  naval  olticer,  it  is  scarcely  possible 
the  defalcations  in  the  accounts  of  the  late  collector  at  New  York  (S. 
Swartwout)  could  have  taken  place,  or  so  long  escaped  detection." 

The  committee  believe  that  the  Mouse  and  country  will  alike  readily 
discern  the  only  proper  remedy  which  such  an  exposition  of  facts  and 
feebleness  imperiously  demands,  as  also  tlie  quarter  whence  it  must  pro- 
ceed. 

From  the  preceding  evidence  the  committee  report  the  following  facts 
as  established : 

1st.  That  the  late  Comptroller  of  the  Treasury,  George  Wolf,  Esq., 
now  collector  of  the  port  of  Philadelphia,  was  guilty,  while  in  said  office 
of  Comptroller,  of  culpable  disregard  of  law  and  neglect  of  duty,  both  in 
regard  to' the  bonds  of  collectors  filed  in  his  office,  and  the  records  thereof 
required  by  law;  and  in  settling  and  certifying  to  the  Register  the  accounts 
of  Samuel  Swartwout,  late  collector,  without  having  transmitted  to  him 
the  voucliers  therefor  required  by  positive  injunction  of  law. 

2d.  That  the  present  Comptroller  of  the  Treasury  has  been  guilty  of 
culpable  disregard  of  law  and  neglect  of  duty,  iti  settling  and  certifying 
to  the  Register  the  quarterly  accounts  of  Samuel  Swartwout,  collector, 
without  having  transmitted  to  him  the  vouchers  therefor  required  l)y  posi- 
tive injunction  of  law. 

3d.  Thiit  said  Conq)troller  is  also  guilty  of  culpable  disregard  of  law  and 
neglect  of  duty  :  first,  in  not  having  sought  and  ascertained  from  the  "  in- 
voices andappraisements"  at  the  custom-house  at  New  York, cither  tjirougli 
the  Solicitor  of  the  Treasury  or  otherwise,  the  true  amount  of  S wartwout's 
claim  upon  the  $201,000  retained  by  him  on  going  out  of  office,  as  sug- 
gested in  the  letter  of  the  district  attorney  that  was  before  him,  dated 
April  25,  183S  ;  secondly,  in  not  causing  the  accounts  of  said  Swartwout 
to  be  forthwith  stated,  or  instituting  measures  therefor  immediately  on  the 
neglect  of  said  Swartwout  to  return  and  settle  his  accounts  at  the  expira- 
tion of  the  time  allowed  him  by  law  for  the  purpose,  to  wit,  in  the  early 
part  of  July,  1838  ;  thirdly,  in  continuing  the  same  neglect,  and  to  Issue 
■warrants  of  distress  against  said  Swartwout  and  his  sureties,  from  the  31st 
of  August,  1838,  when  it  appeared  by  thii  letter  of  the  First  Auditor  that 
.said  accounts  still  remained  unsettled,  until  the  month  of  November,  when 
the  detection  of  Swartwout's  larger  defalcations  was  communicated  from 
New  Yurk. 

4th.  Tiiat  the  administration  of  said  office  is  marked  with  such  signal 
inefficiency,  as  well  as  neglect  of  duty,  as  to  render  nugatory  many  of  the 
most  important  checks  upon  the  F'irst  Auditor,  and  collectors,  receivers, 
and  disbursers  of  the  public  money,  which  the  laws  creating  and  regula- 
ting its  duties  contem[)latecl,  and  have  sufficiently  provided. 

5th.  That,  in  said  disregard  of  law  and  neglect  of  duty  by  the  said  Comp- 
trollers, and  inefficiency  of  the  office  as  now  administered,  is  to  be  found 
a  primary  cause  of  the  immense  defalcations  of  the  late  collector  at  the- 
port  of  New  York,  and  consequent  loss  of  the  public  money. 


Rep.  No.  313.  71 

Cause  5. —  The  discniitiniiance  of  the  use  of  banks  as  depositories  of  the 
public  moneys,  and  permitting  the  same  to  accu?7itilate  in  the  hands 
of  Mr.  Sivartivout. 

By  ihc  depositc  act  of  1S3G,  as  construed  by  the  frequent  practice  of 
tlie  Secretary  ot  the  Treasury,  tlie  Secretary  has  been  at  no  time  preclu- 
ded from  the  use  of  banks  as  special  depositories  of  the  public  money,  in 
preference  to  allowing  the  same  to  accumulate  in  the  hands  of  the  collector. 

For  instance,  as  appears  by  the  testimony  of  the  cashiers  of  the  Bank  of 
America  and  of  the  Manhattan  Company,  each  of  those  banks  was 
used  as  a  special  dep-ository  of  the  Govennnent  for  large  sums  during  the 
period  of  their  suspension  of  specie  payments.  All  banks  might  have  been, 
in  like  manner,  so  used. 

It  appears,  further,  from  the  testimony  of  Mr.  Woodbury,  answer  38, 
that,  during  the  suspension  of  specie  i)ayments,  circulars  were  issued,  "ift 
substance,  that,  where  no  general  deposite  banks  remained,  that  could  be 
legally  employed  as  such,  the  collecting  officers  might  place  the  surplus 
of  their  funds,  if  increasing  beyond  certain  specified  amounts,  not  exceed- 
ing their  official  bond?,  in  some  safe  bank,  in  special  deposite,  to  be  drawn 
out  again  only  on  drafts  of  the  Treasurer,  placed  on  the  collectors  and  re- 
ceivers and  payable  at  that  bank." 

Had  the  Secretary  of  the  Treasury,  instead  of  discontinuing  the  use  of 
banks,  and  leaving  it  discretionary  with  the  collector  to  deposite,  or  not, 
specially  in  bank,  made  it  imperative  on  collectors  and  receivers  thus  to 
have  used  banks,  the  evidence,  weekly,  of  the  collectors'  deposite  in  bank 
would  have  accompanied  the  collector's  own  return  of  the  fact  that  the 
money  was  on  hand,  and  had  not  been  used.  When,  however,  this  spe- 
cies of  check  upon  tlie  collector  was  abandoned,  the  return  of  thecoll^ector 
alone  was  necessarily  relied  on  ;  and,  although  it  did  state  truly  the 
amount  of  money  collected,  it  would  fail  to  be  evidence  of  satisfactory 
cliaracter  that  it  had  not  been  diverted  from  public  to  private  uses  bj^'  the 
collector.  The  following  testimony  illustrates  the  evident  loss  of  a  portion 
of  the  public  money  to  the  Government  in  the  case  of  Mr.  Swartwout, 
from  the  deception  he  was  enabled  to  practise  from  week  to  week  respect- 
ing the  money  actually  on  hand,  by  means  of  the  power  he  had  of  retain- 
ing it  in  his  own  personal  confrol,  instead  of  depositmg  it  in  bank. 

Mr.  FIe?ning,  auditor  of  customs,  examined  by  Mr.  Smith. 

Question  111.  Did  you  make  out  the  weekly  cash  return  of  Mr.  Swart- 
wout to  the  Secretary  of  the  Treasury,  bringing  the  account  up  to  March 
28,  183S,  as  found  in  House  document  13,  p.  11,  and  showing  a  balance 
of  money  due  on  cash  account  of  S30l,096  40?  Was  said  balance  the 
true  result  and  state  of  that  branch  of  Mr.  Swart wout's  accounts?  and  did 
he,  in  truth,  have  on  hand,  within  your  knowledge,  any  such  amount  of 
money  at  the  time  said  account  was  rendered  ? 

,/lnswer.  The  said  weekly  cash  return  ivas  made  out  by  me.  The  bal- 
ance of  $201,096  40  was  the  true  result  and  state  of  that  account,  provi 
ded  tlie  cash  book  from  which  the  data  were  derived  was  correct.  Whether 
Mr.  Swartwout  had  on  hand  that  amount  of  money  at  the  time  the  ac- 
count was  rendered,  I  am  unable  to  state,  having  no  knowledge  of  that 
portion  of  his  business. 


72  Rep.  No.  313. 

Question  112.  Previous  to  the  discoiitiiinance  of  banks  as  general  de- 
positories of  the  Government  by  the  Treasury  Department,  were,  or  were 
not,  certificates  of  the  cashiers  of  the  banks  used  as  depositories  required 
by  the  Treasury  Department  to  accompany  tiie  weekly  cash  accounts  ren- 
dered by  ]\Jr.  Swartwout  to  said  Department,  and  as  vouchers  of  the  ac- 
count, and  that  the  money  was,  in  fact,  on  hand  ?  Since  such  discontinu- 
ance of  the  use  of  banks  as  depositories  by  the  Treasury  Department,  has 
any  species  of  voucher  been  required  to  be  furnished  in  connexion  with 
the  weekly  returns  of  the  collector,  to  prove  that  the  money  reported  to  be 
on  hand  was  so  in  fact  ? 

Jlnswer.  Previous  to  the  discontinuance  of  banks  by  the  Treasury  De- 
partment, certificates  from  them  were  required  to  accompany  the  weekly 
returns,  as  voucliers  for  the  transfer,  and  that  the  money  was  in  bank. 

Since  such  discontinuance,  I  know  of  no  species  of  voucher  required  by 
the  Treasury  Department  to, be  furnished  in  connexion  with  the  weekly 
returns,  to  denote  that  the  balance  of  money  reported  was,  in  fact,  on  hand. 

It  is,  then,  apparent  that,  had  the  depositing  system  of  banks  been  con- 
tiimed,  Mr.  Swartwout  could  not  have  had  money,  beyond  the  collections 
of  a  single  week,  exceeding  the  current  expenses  of  his  olfice,  to  have  re- 
tained on  going  out  of  office ;  and  the  evidence  of  his  not  having  diverted 
any  previous  to  that  time,  and  t!;at  all  previous  collections  were  in  bank, 
■would  have  been  n^gularly  derived  from  the  banks,  as  well  as  in  Mr.  Swart- 
wout's  ofiicial  returns. 

Cause  6. —  The  negligence  and  failure  af  the  Secretary  nf  the  Treasury 
to  discharge  his  duty,  as  the  head  of  the  Treasxiry  Department, 
charged  by  laic  ivith  the  superintendence  of  the  collection,  of  the  revenue. 

By  the  act  of  September  2, 17S9,  section  2,  it  is  made  "  the  duty  of  the 
Secretary  of  the  Treasury  to  digest  and  prepare  plans  for  the  improve- 
ment and  management  of  the  revenue,  and  for  the  support  of  public 
credit ;  to  prepare  and  report  estimates  of  the  public  revenue  and  the 
public  expenditures;  to  superintend  the  collection  of  the  revenue;  to 
decide  on  the  forms  of  keeping  and  stating  accounts,  and  making  re- 
turns,^^  ^'C. 

By  the  act  of  May  8,  1792,  section  G,  it  is  provided  "that  the  Secre- 
tary of  the  Treasury  shall  direct  the  superintendence  of  the  collection  of 
the  duties  on  impost  and  tonnage,  as  he  shall  judge  best ;"  and  by  section 
9  of  the  same  act,  *•  that  the  forms  of  keeping  and  rendering  all  pub- 
lic accounts  whatsoever  shall  be  prescribed  by  llie  Department  of  the 
Treasury." 

By  virtue  of  section  6  of  the  above-recited  act,  it  appears,  in  the  fol- 
lowing extract  of  a  circular  of  the  Secretary,  that  froin  tjienccforward  the 
duties  originally  confided  to  the  Secretary  were  in  part  assigned  to  the 
Comptroller,  to  wit; 

"  Circular  to  the  collectors  of  the  customs. 

"  TijEAsuRV  Department, 

"  October  25,  1792. 
"  Sin  :  Pursuant  to  t!ie  discretion  vested  in  me  by  t!ie  Gth  section  of  the 
act  entitled  '  An  act  making  ulterations  in  the  Treasurjr  and  War  Depart- 
ments,' I  have  concluded  to  commit  the  immediate  superintendence  of 


Hep.  No.  313.  73 

the  collection  of  the  duties  of  imports  and  tonnage  to  the  Comptroller  of 
tlie  'J'reasury. 

I  "  You  will,  therefore,  henceforth  correspond  with  that  officer  relatively 
to  all  matters  ariising  out  of  the  laws  which  respect  the  laying  or  collect- 
ing of  those  duiics;  and  you  will  consider  his  conmiuuicalions  and  in- 
stiuciions,  in  regard  to  such  matters,  as  of  the  same  force  and  validity 
which  they  would  have  if  coming  trom  me. 

"  Thi^;,  however,  is  not  to  be  understood  to  comprehend  tlje  disposition 
and  payment  of  the  moneys  accruing  from  tliose  duties,  which,  as  here- 
tofore, will  be  under  my  immediate  direction. 

"Accordingly,  all  the  returns  and  documents  which  you  have  been  ac- 
customed to  traiistnit  to  ilie  Secretary  of  the  Treasury  are  hereafter  to  be 
transmitted  to  the  Comptroller,  except  the  following:  1.  Weekly  return 
o[  moneys  received  and  paid  ;  2.  Monthly  schedule  of  bonds;  3.  Monthly 
abstract  of  bonds  unpaid  ;  4.  Paid  drafts,  and  receipts  for  moneys  paid  to 
banks,  and  otherwise,  under  special  directions  from  me." 

Through  all  periods  since  1792,  as  well  as  before,  and  from  the  first  or- 
ganization of  the  Tre.isury  Departaient  undin*  the  act  of  1789,  the  weekly 
and  monthly  reiuriis  of  collectors,  expressly  reserved  to  the  Secretary  in 
the  above  circular,  have  been  required  to  be  made  to  the  Secretary,  and 
have  been  sj  made. 

Whatever  may  be  the  construction  of  modern  days,  of  the  use  or  utility 
of  these  reiurns  to  the  Secretary,  it  is,  beyond  dispute,  an  established  fact, 
that  they  originated  in  the  wise  purpose  of  placing  that  officer  in  pos- 
session of  a  ready  and  constant  check,  and  independent  of  all  other  de- 
partments, upon  all  officers  employed  to  receive  public  moneys;  and, 
also,  upon  the  Treasurer  having  the  moneys  in  keeping  after  the  same 
have  been  paid  over  by  the  former. 

For  a  correct  exf)onent  of  the  purposes  of  these  weekly  and  monthly 
returns,  nearly  concurrent  with  their  origin,  the  committee  have  reverted 
to  a  report  ir'.ade  to  the  linuse  of  Representatives  in  January,  1801,  by  a 
committee  appointed  to  inquire  into  the  condition  of  the  Treasury  De- 
partment, and  in  which  it  is  said  "  the  actual  amount  of  moneys  in  the 
custody  of  the  Treasurer  may  be  at  any  time  ascertained,  independently 
of  his  own  returns,  by  the  statements  which  are  constantly  made  and 
transmitted  to  the  Secretwy  by  those  who  collect  and  receive  public 
moneys  into  their  custody  in  the  different  parts  of  the  ITnion." 

The  importance  in  which  these  returns  were  held  in  other  days  by  the 
heads  of  the  Treasury  Department,  may  be  also  seen  in  the  constant  rep- 
etition of  circulars  issued  to  collectors  and  receivers  of  public  money,  en- 
joining particularity  and  punctuality  in  the  transmission  of  them.  The 
foUowmg  may  be  taken  as  an  example  of  the  estimation  of  them  that 
has  prevailed  from  the  days  of  Jefierson  downward: 

CIRCULAR. 

Treasury  Department,  Jhtgust  20,  1801. 
Sir:  At  the  same  lime  that  the  punctuality  manifested  by  the  greater 
number  of  the  collectors  is  acknowledged  with  real  satisfaction,  the  re- 
missness discoverable  in  others  renders  it  incnmbeiU  on  me  to  impress  on 
the  minds  of  all  the  absolute  necessity  of  conforming  to  those  regulations 
6 


74  Kep.  No.  313. 

which  have  been  heretofore  prescribed,  either  by  law  or  by  this  Depart- 
ment. Of  those,  a  punctual  transmission  of  accounts  to  the  Comptroller 
of  the  Treasury  lor  settlement,  pursuant  to  the  twenty-first  section  of  the 
collection  law,  is  doomed  to  be  of  the  first  importance;  and  the  President 
has  accordingly  dirccied  me  to  say,  that  a  rigid  adherence  to  the  regula- 
tion of  rendering  each  quarterly  account,  previously  to  the  expiration  of 
the  next  ensuii:g  quarter,  shall  hereafter  be  considered  as  indispensably 
necessary. 

The  documents  to  be  forwarded  to  (his  office  particularly,  and  which 
you  arc  requested  to  render  with  punctuality,  are  as  follows: 

A  weekly  return  of  moneys  received  and  paid  by  you.  On  this  it  is 
necessary,  on  account  of  the  forms  observed  by  some  of  the  collectors,  to 
request:  1st.  That  the  return  should  bear  date  regularly  the  last  day  of 
the  week,  and  should  include  only  tlie  whole  of  the  receipts  and  pay- 
ments for  tlie  entire  week,  the  said  last  day  included.  2d.  That  it  should 
regularly  be  transmitted  by  the  mail  next  ensuing  the  day  on  which 
it  is  stated.  3d.  That  the  moneys  received  for  bonds  paid  on  the  week 
when  they  became  due,  for  bonds  paid  after  liaving  been  put  in  suit,  for 
duties  on  merchandise  paid  at  the  time  of  importation,  and  for  duties  on 
tonnage,  should  respectively  be  distinguished  from  each  other,  and  also 
from  moneys  received  on  any  other  account.  4th.  That  the  payments 
made  in  the  Treasury,  the  payments  for  debentures  falling  due  on  the 
same  days  with  the  duties  on  the  same  parcel  of  merchandise,  for  deben- 
tures issued  for  drawback  of  duties  already  paid,  for  bounties  on  pickled 
fish  and  salted  provisions,  for  drawbacks  on  the  exportation  of  domestic 
distilled  spirits,  for  allowances  to  fisheries,  and  for  expenses  attending  th© 
collection  of  the  revenue,  should  also  be  respectively  distinguished  from 
each  other,  and  frorn  payments  made  on  any  other  account.  5th.  That 
the  day  on  which  paynjents  are  n.ade  in  the  Treasury,  either  by  remit- 
tances, payments  of  drat'ts,  or  payments  in  bank,  should  be  respectively 
specified.  6th.  That  the  moneys  received  from  seamen  as  hospital 
money,  or  in  the  caie  of  agents  disbursed  lor  the  assistance  of  seamen, 
should  net  be  included  in  the  return.  liut  the  specifications  here  men- 
tione<l  must  not  be  construed  to  prevent  or  exclude  any  other  more  de- 
tailed return  which  may  have  heretofore  been  adopted  by  the  collector. 

A  weekly  return  of  debentures  issued  during  the  week  for  drawbacks^ 
and  of  such  entries  made  during  the  s;ime  week  as  will  hereafter  entitle 
the  person  making  the  same  to  either  a  drawbacic,  bounty,  or  allowance 
for  fisheries. 

A  weekly  abstract  of  bonds  put  in  suit  during  the  week,  designating 
those  paid,  and  noting  also  at  the  end  of  the  abstract  the  bonds  put  in  suit 
at  any  time  previous  to  the  week  to  which  the  abstract  refers,  and  which 
may  have  been  paid  during  the  said  week. 

A  monthly  schedule  of  liquidated  bonds. 

A  quarterly  return  of  the  moneys  received  and  paid  by  you  on  account 
of  the  marine  hospital. 

It  is  to  he  understood,  however,  that  this  letter  is  not  intended  to  forbid 
the  transmission  of  any  other  accounts  or  documents  in  pursuance  of 
former  instructions  from  this  Department,  and  particularly  of  those  usually 
transmitted  to  the  Comptroller  and  to  the  Register  of  the  Treasury. 

It  may  be  proper  here  to  remind  those  collectors  who  pay  into  banks, 
that  the  public  moneys  ought  not  to  be  permitted  to  accumulate  in  their 


Rep.  No.  313.  75 

hands,  and  tliat  those  whose  local  situation  renders  it  practicable  should, 
at  tlie  cud  of  every  week,  pay  in  tiie  whole  amount  of  the  balance  of  the 
weekjexcopUii^  oiilysucli  siun  as  may  be  absolutely  necessary  lo  face  the 
current  disbur-cinent.s  of  the  euaiiing  week.  It  is,  indeed,  very  seldom 
necessary  to  retain  any  moneys  for  tliat  inirpose,  as  tlie  receipts  of  each 
week  almost  universally  exceed  the  disbursements  thereof;  and  the 
amonnt  payable  during  the  course  of  each  may  be  always  previously 
ascertained  with  great  precisian,  except  in  relation  to  bounties;  the  pay- 
ment of  which  depends,  it  is  true,  on  a  contingency,  but  the  amount  of 
which  never  can  make  any  material  dilic^rence  in  the  estimate.  The  same 
principle  .sliould,  as  far  as  practicable,  regulate  the  payments  of  those  col- 
lectors wlio  live  at  a  distance  from  the  bank  in  which  they  are  directed 
to  pay  the  amount  of  their  receipts. 

From  the  best  view  I  have  been  able  to  take  of  the  subject,  it  is  my 
opinion  that  notiiing  is  here  reqnested  from  you  which  is  not  essentially 
necessary,  either  for  the  security  of  the  revenue,  or  for  furnishing  this 
Department  with  important  i'lformation;  that  nothing  is  requested  which 
it  is  not  in  your  power  to  perform.  Should  you,  however,  apprehend 
any  real  anJ  considerable  diiliculty  in  a  strict  compliance  with  every  part 
of  what  is  prescribed,  your  objections  will  be  weighed  with  candor,  and 
reasonable  aUeraiious  introduced,  so  far  as  they  may  not  derange  the  gen- 
eral system  adopted,  keeping  l/iis  Dipartment  constantly  (ind  regularly 
acqu  tinted  witk  eoery  tr.insuction  rvhick  relates  to  the  rcvemie. 

Not  doubting  that  your  incrmation  will  therein  coincide  with  my  own, 
I  take  this  opporiuniiy  to  invite  you  to  communicate,  from  time  to  time, 
whatever  your  observations  and  experience  may  suggest,  in  relation  to 
any  defects,  improvements,  or  evasions  of  the  revenue  laws.  The  effect 
of  the  present  rate  of  duty  on  tha  iinportatioiis  and  consumption  of  the 
several  species  of  merchandise,  as  they  may  affect  either  revenue  or  com- 
msrce,  and  tiie  ellrcacy  of  the  present  laws  and  establishments  towards  pre- 
venliuTf  frauds,  equally  injurious  to  the  public  and  to  the  fair  trader,  are 
objects  of  primary  importance,  and  on  which  your  communications  will  be 
parti  ailarly  acceptable. 

I  have  ihg  honor  to  bo,  witii  consideration,  sir,  your  obedient  servant, 

ALBERT  GALLATIN. 

BsxjAMiN  Lincoln,  Esq., 

CoHector,  Huston. 

''  Eudry  transaction^'  which  related  to  the  rcDenue  was  thereby  con- 
stantly brought  to  the  acquaintance  of  the  Secretary's  Department. 

With  a  vie^v  to  render  these  returns  still  more  available  in  their  im- 
portant uses,  by  the  S  ;cretary,  as  well  as  in  a  better  state  of  preservation, 
they  were,  until  latterly,  made  a  component  part  of  the  records  of  his  De- 
partm?nt.  All  tlie  cash  transactions  of  the  weekly  returns  were  carefully 
selected,  and  conlensed  into  a  record  divided  intocolumns,  and  the  charac- 
ter of  wliicli  will  be  fully  understood  by  the  following  examination  of  Mr. 
Young,  chief  clerk,  at  the  present  timo,  in  the  Secretary's  Department: 

Mr.  Young  examined  by  Mr.  Curtis. 

0>iisti'}n  4.  You  have,  at  my  request,  produced  to  the  conuniltee  a  large 
folio,  having  the  inscription  upjii  the  back  of  it,  "  IVeekly  returns  of  re- 


76  Rep.  No.  313. 

eeipts  and  payments  of  collect  or  fi  of  the  ciistoms,'"  1831,  1832  ;  Treas- 
ury Departfneiit.  Is  that  book  iVoin  tlie  office  of  the  Secretin ry  of  the 
Treasury?  From  what  data  is  that  book  made  tip  ?  When  was  the  prac- 
tice of  making  entries  in  that  book  discontinued?  Will  you  please  arniex 
to  your  answer  a  portion  of  the  last  page  written  in  that  book,  under  the 
head  of  "New  York,  Samuel  Swartwout,"  with  copies  of  the  last  two 
entries,  to  show  the  character  of  the  book  ? 

^^nsLver.  The  book  referred  to  is  from  the  office  of  the  Secretary  of  the 
Tn^asury.  It  is  made  up  from  the  returns  made  to  him  by  collectors,  of 
their  receipts  and  expenditures.  The  entries  therein,  as  I  have  under- 
stood from  the  clerk  who  had  charge  of  it,  were  discontinued  in  1831. 

The  aimexed  paper,  marked  M.  Y,,  No.  1,  is  a  copy  of  part  of  the  two 
last  entries  in  the  last  page  of  this  book,  under  the  head  of  New  York. 


Rep.  No.  313. 


77 


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78  Rep.  No.  313. 

It  will  be  perceived  that  the  same  tef.timony  iiidicales  that,  since  1831, 
this  species  of  important  record  h;is,  from  t^ome  cause,  fallen  into  disuse 
in  the  Secretary's  Department,  And  with  the  record,  the  elemenis  of  it 
appear  also  to  have  slsarcd  nearly  tlie  same  fate,  nnlil  "nccnt  events" 
have  roused  them  to  a  ditierent  dei-tination.  The  following  testimony  of 
the  same  witness  illustrates  this  lad  : 

Examhicd  by  Mr.  Curtis. 

Qucslion  5.  Since  the  practice  of  making  entries  in  the  book  of  weekly 
returns  of  collectors  has  fallen  into  disuse,  what  disposition  lias  I  een  made 
of  the  original  "weekly  returns?"  Have  they  been  careiully  preserved 
and  bound  together  in  books?  Have  they  not,  mitil  the  recent  defalca- 
tion of  Mr.  Swartwout,  been  thrown  aside  as  of  no  value;  and  has  not 
search  for  tliem  been  lately  made,  and  have  they  all  been  found  ? 

,dnsiver.  Since  the  entries  were  discontinued  in  the  book  mentioned, 
the  returns,  after  they  were  received,  were  referred  to  a  clerk  to  be  ex- 
amined and  filed.  It  was  the  duty  of  this  cleric,  if  lie  should  see  nny 
thing  suspicious  on  the  face  of  the  return,  to  report  it  to  the  Secretary  or 
myself.  After  an  accimiulation  of  them  for  one  or  two  years,  they  were 
removed  from  the  files  and  put  in  a  room  where  papers  were  placed,  to 
which,  it  was  supposed,  no  reference  would  be  required.  These  returns 
have,  as  I  believe,  never  been  bound  together  since  the  binning  of  the 
Treasury  building,  in  1S33.  I  never. considered  them  as  of  no  value,  but 
of  very  little  consequeLce ;  yet,  as  they  were  of  a  character  that,  possi- 
bly, reference  to  them  might  be  necessary,  they  were  placed  aside  as 
stated. 

In  answering  this  interrogatory,  the  period  embraced  in  my  answer  ex- 
tends only  as  far  back  as  Septend)er,  1833,  when  I  first  entered  the  De- 
partment. The  retiu'ns  are  fHAv  being  arranged,  and  there  are  some  yet 
missing:  but  all  the  bundles  have  not  yet  been  examined. 

As  a  part  of  the  same  system  of  securing  to  the  Secretary  an  independ- 
ent superintendence  of  '^  every  Iransaction  which  relatefi  to  the  reveinie,'" 
instituted  immediately  upon  the  enactment  of  the  law  oriianizing  the 
Treasury  Department,  another  record,  deduced  from  the  monthly  returns 
of  collectors,  has  been  kept  in  his  Department.  Tiie  following  examina- 
tion of  a  clerk  in  the  Secretary's  office  will  explain  this  in  full: 

Charles  Dumynir  examined  by  Mr.  Curtis. 

Question  1.  Are  you  a  clerk  in  tlie  olfice  of  the  Secretary  of  the  Treas- 
ury, and  when  did  you  enter  upon  your  duties  as  such  clerk  ? 

Answer.  I  am  a  clerk  in  the  odice  of  the  Secretary  of  the  Treasury,  and 
entered  upon  my  duties  on  the  7th  January,  1837,  as  I  no<.v  recollect. 

Question  2.  Is  it  a  part  of  your  duty  as  such  clerk  to  U\kc  charge  of  a 
folio,  denominated,  by  the  gilt  letters  on  the  back  of  i(,  "  Custom-house 
bonds?'' 

Answer.  When  I  took  charge  of  the  duties  which  had  been  performed 
by  Mr.  Anthony,  I  found  the  entry  from  returns  of  bonds  taken  and  liqui- 
dated by  collectors  among  the  duties  which  were  attached  to  his  desk;  and 
1  have,  since  I  was  appointed  to  the  situation  he  held,  entered  such  re- 
turns, as  I  received  them,  in  the  book  marked  "  Custom-house  bonds,"  and 


Rq).   No.  313.  79 

consider  it  a  part  of  my  duty  ;  and  it  is  the  book  [  now  {lave  before  the 
committee. 

Question  '5.  By  way  of  showing  the  nature  of  tlie  book,  and  that  there 
are  two  subdivisions,  the  one  under  the  head  of  "  General  account  of 
bonds  taken  and  liquidated  for  duties  on  77ierchandisc  at  the  several 
cti^ lorn-houses,''  and  the  other,  "  Account  of  bonds  taken  for  duties  on 

merchandise  which  fall  due  in  the  month  of ,  183  ;"  will  you  give 

copies  of  two  pages  of  that  book  ? 

,^nswer.  A  gentleman  of  the  committee,  whom  I  afterwards  understood 
to  be  Mr.  Curtis,  rec^uested  me,  when  I  was  first  cited  before  them  with 
the  book  marked  '•  Custom-house  bonds,"  to  make  a  copy  of  two  respec- 
tive pages  from  said  book;  wliich  I  have  done,  and  present  them  as  a  true 
copy  of  the  pages  marked  by  said  gentleman  to  be  copied  from  the  book. 
These  two  pages  embrace  a  transcript  of  the  manner  in  which  the  book 
is  kept  under  the  heads  of  "  General  account  of  bonds  taken  and  liqui- 
dated for  duties  on  merchandise  at  the  several  custom-houses,"  and  an 
"  Account  of  bonds  taken  for  duties  on  merchandise  which  fall  due  in  the 
month  of ,  183  ." 


80 


Rep.  Xo.  313. 


A. 

General  account  of  bonds  taken  and  liquidated  for  duties  on  merchan- 
dise at  the  several  cuslom-houses. 


Districts. 

January, 

February, 

March, 

April, 

May, 

June, 

1837. 

1837. 

1837. 

1837. 

1837. 

1837. 

Portsmouth 

_ 

_ 

_ 

_ 

§4,683  00 

§3,097  78 

IS'ewburyport 

- 

- 

$639  92 

§1,64!   60 

2,662 

66 

1,545  49 

Gloucester 

- 

$1,261  00 

- 

5,477  69 

_ 

3,952  55 

Salem 

$1,882  28 

452  93 

3,668  10 

4,659  61 

15,500 

58 

1,315  51 

Ipswich. 

Marblehead 

807  30 

_ 

_ 

- 

2,041 

15 

Boston     - 

175,000  00 

275,000  00 

195,642  50 

180,000  00 

200,000 

00 

165,000  OO 

Plymouth,  Mass.  - 

none 

none 

none 

none 

none 

423  85 

Barnstal)le. 

Nantucket. 

New  Bedford 

3,344  50 

- 

8,316  06 

Dighton  - 

- 

- 

2,839  90 

none 

- 

12,111   10 

York 

none 

none 

none 

- 

none 

none. 

Saco. 

Portland  - 

1,343  95 

7,454  21 

13,701   12 

17,855  91 

- 

25,455  97 

Edgartown. 

Bath 

- 

- 

- 

- 

1,525 

68 

552  63 

Wiscasset. 

Penoi)scot 

- 

- 

1,732  03 

Belfast      - 

- 

_ 

_ 

- 

535 

76 

597  57 

Frenchman's  Bay. 

Machias. 

Passamaquwldy    - 

- 

- 

- 

511  92 

1,192 

61 

none. 

Waldoborough. 

Kenn^bunk 

- 

- 

- 

- 

784 

67 

3,226  95 

Newport  - 

- 

- 

- 

.3,751   62 

2,437 

48 

1,379  68 

Bristol      - 

3,388  20 

11,583  97 

- 

1,249  80 

8,094 

9K 

10,355  90 

Providence 

10,764  84 

3,203  49 

- 

- 

11,203 

44 

-3,133  10 

New  London. 

New  Haven 

501  56 

none 

none 

12,581   06 

14,363 

72 

9,621  47 

Fairfield. 

Middletown 

- 

_ 

438  18 

5,026  08 

1,127 

12 

2,305  64 

Vermont 

_ 

- 

- 

- 

_ 

2,004   13 

Sag  Harbor. 

New  York 

902,044  06 

986,666  20 

1306746  93 

994,340  10 

729,328 

11 

682,735  26. 

Champlain. 

Cape  Vincent. 

■ 

Perth  Arnboy. 

Great  Egg  Harbor 

none 

none 

none 

none 

none 

none. 

Little  Egg  Harbor. 

Newark,  N.  J.     - 

— 

— 

~ 

~ 

~ 

664  05 

Rep.  No.  313. 
B. 


81 


Account  of  bonds  taken  for  duties  on  7nerchandise  which  fall  due  in 

January,  1837. 


District?. 

January, 

March, 

April, 

May, 

July, 

October, 

1836. 

1836. 

1836. 

1836. 

1836. 

1836. 

Portsmouth 

$1,379  42 

Newburyport 

- 

- 

- 

- 

$1,709  27 

Gloucester 

- 

- 

- 

- 

1,787  00 

Salem 

_ 

_ 

_ 

_ 

2,173  00 

14,321  OO 

Ipswich. 

Marbleliead. 

Boston     - 

- 

- 

- 

- 

200,000  00 

137,500  00 

Plymouth,  Mass.  - 

- 

- 

- 

- 

- 

105  07 

Barnstable. 

Nantucket. 

New  Bedford 

_ 

_ 

- 

- 

1,90.1  00 

4,706  37 

Dighion  - 

_ 

_ 

_ 

- 

1,845  00 

1,348  86 

York. 

Saco. 

Portland 

- 

_ 

- 

- 

5,213  33 

1,984  47 

Edgartown. 

Bath 

_ 

_ 

- 

- 

- 

1,094  39 

Wiscasset. 

Penobscot. 

Belfast. 

Frenchman's  Bay. 

Machias. 

Pas.'aniaquoddy    - 

_ 

- 

- 

- 

4,025   12 

160  44 

Waldoborough. 

Kennebunk. 

Newport. 

Bristol     - 

_ 

_ 

- 

- 

1,278  00 

1,180  01 

Providence 

_ 

- 

- 

- 

2,582  54 

2,573  28 

New  London. 

New  Haven 

_ 

. 

- 

- 

7,165  00 

Fairfield. 

Middletown 

- 

- 

- 

- 

2,091  52 

Vermont. 

Sag  Harbor. 

Nov.$28,493  84 

New  York 

Aug.$35,089  30 

- 

- 

- 

428,981  08 

352,161   04 

Champlain. 

Cape  Vincent. 

Perth   Amboy. 

Great  Egg  Harbor. 

Little  Egg  H:irbor. 

Newark,  N.  J.     - 

- 

- 

■* 

~ 

432  47 

162  94 

35,089  30 

28,493  84 

- 

- 

661,188  33 

618,677  29 

82  Kep.  No.  313. 

Question.  4.  Do  yon  Know  the  object  for  which  that  book  is  kept  in  the 
Secretary's  office,  and  what  is  the  use  made  of  it  ? 

Am-icer.  I  do  not  know  the  object  for  whicli  the  book  was  originally 
kept,  or  what  use  was  n)ade  of  the  informatim,  as  my  connexion  witk 
the  book  has  not  been  long.  I  should  think,  liowever,  tliat  the  object 
must  have  been  to  aid  the  Department  with  information,  particularly 
when  the  system  of  credit  was  different  from  the  present. 

Question  5.  From  wliat  data  do  you  make  entries  in  tjiis  book  from 
time  to  time  ? 

%finsiver.  I  make  the  entries  I'rom  returns  whicli  are  received  from  the 
collectors  of  customs;  they  arc  made  of  bonds  taken  and  liquidated 
monthly,  as  I  think. 

Question  G.  Do  not  these  returns  purport  to  be  "  monthly  returns  of 
bonds  taken  and  liquidated,"  rendered  by  collectors  to  the  Secretary? 

,/inswer.  As  far  as  I  Iiave  examined  those  I  have  received,  they  are 
monthly  returns. 

Question  7.  Has  that  book  ever  been  called  for  by  the  Secretary  of  the 
Treasury,  the  chief  clerk,  or  other  person  in  the  Secretary's  office,  for  ex- 
amination. 

Answer.  It  has  not  been  called  for  by  the  Secretary  or  chief  clerk,  or 
other  person,  for  examination,  since  I  have  had  charge  of  it. 

Question  8.  Up  to  what  period  are  the  entries  in  that  book  brought  up 
and  completed? 

Jlnstver.  January,  1839. 

Question  9.  Does  that  book  enable  one  Avho  examines  it  to  see  what 
amount  of  bonds  are  payable  in  any  given  month  at  the  port  of  New 
York,  and  other  ports  ? 

^^nswer.  So  far  as  the  returns  present  them,  it  does. 

In  continuation,  and  to  complete  the  record  view  secured  to  the  Secre- 
tary at  all  times,  of  ^^  anj/ trcn)sac/io)i  tvhicti  relates  to  the  7'evenue,^' a. 
third  book  was  formerly  compiled  for  his  office  from  the  quarterly  returns 
of  collectors  made  to  other  accounting  officers  of  the  Treasury.  It  will 
be  seen,  from  the  following  testimony  of  the  present  Secretary,  what  was 
the  nature  of  this  record,  and  how  far  it  has  fallen  into  disuse  under  his 
administration  of  the  office. 

Levi  JVoodbury ,  Secretary  of  the  T^'easury,  examined  by  Mr.  Wise. 

Question  21.  When  were  you  appointed  to  the  office  of  Secretary  of 
the  Treasury  ?  Please  loolc  on  the  book  presented,  entitled  "  Collectors' 
quarterly  accounts,"  and  say  whether  you  have  ever  examined  this  book, 
and  when  ? 

^'inswer.  I  entered  on  the  duties  of  Secretary  of  the  Treasury  about  the 
4th  of  July,  A,  D.  1834.  The  book  mentioned  appears  to  be  that  before 
referred  to,  in  which  one  of  the  clerks  in  my  office  was  in  the  habit  of 
making  the  entries  sent  from  the  Auditor's  office.  I  have  no  recollection 
of  ever  having  had  occasion  to  examine  that  book  for  any  particular  pur- 
pose, or  ever  to  have  exrunined  it  till  since  the  question  ^rosc  concerning 
the  dis:ontinuance  to  make  those  entries.  On  some  occasions  I  have  visited 
the  rooms  of  the  diflerent  clerks  in  my  own  offic<j,and  made  a  general  in- 
spection of  the  books  in  which  they  were  then  writing,  or  of  the  business 


K(|>.  No.  313. 


83 


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84  liep.  No.  313. 

Jitiswer.  The  book  in  which  the  entries  were  made  of  the  aggregates 
of  several  items  from  the  accounts  returned  by  collectors  to  the  First 
Auditor,  contains  snch  headings  or  titles  us  are  described  in  the  above  in- 
terrogatory ;  and  the  entries,  made  as  1  suppose  by  the  clerk  in  my  othce, 
Mr.  Dungan,  who  had  charge  of  the  book,  are  in  the  sums  or  amounts 
described  in  the  interrogatory. 

In  the  next  pages  the  entries  for  the  ;3d  quarter  of  1S35  do  not  contain 
any  sums  for  twenty  or  twenty-three  ports,  including  New  York  among 
them  ;  and  no  other  entries  for  any  port  appear  to  have  been  made  in  that 
book  afterwards.  Nor  do  I  know  that  these  aggregates  were, subsequent 
to  that  time,  entered  or  copied  in  any  other  book  m  my  office,  either  for 
New  York  or  any  other  port ;  but  presume,  from  Mr.  Dungan's  statements, 
that  the  accounts  not  having  been  afterwards  sent  in  to  him  from  the 
Auditor's  office,  he  omitted  to  go  after  them,  or  send  for  them,  and  the 
aggregates  were  not  afterwards  copied  by  him ;  and  that  he  omitted  also 
to  make  any  report  to  me  of  these  circumstances,  for  the  reasons  before 
stated  in  reply  to  a  former  interrogatory. 

Mr.  Dungan  is,  however,  now  a  clerk  in  the  oflice,  where  he  has  been, 
I  understand,  over  tv/enty  years;  and  can  give  to  the  committee,  if  they 
desire  it,  fuller  explanations  as  to  the  entries  made  by  him,  and  the  cause 
of  his  discontinuance  to  make  them,  and  the  use,  if  any,  which  had  ever 
been  made  of  them  during  his  acquaintance  with  them. 

From  the  preceding  testimony,  it  is  manifest  that,  although  all  the  be- 
fore-named records  appertain  to  one  "general  system,"  which  was  devi- 
sed to  secure  an  independent  superintendence  of  the  revenues  to  the  Sec- 
retary of  the  Treasury,  at  the  same  time  the  execution  of  the  laws  for 
collecting  those  revenues  was  committed  to  subordinate  officers.  The 
system  has,  of  late  years,  been  permitted  to  fall  into  utter  neglect  and  dis- 
use, 1st,  by  the  total  discontinuance  of  two  out  of  the  three  books  of  rec- 
ords of  which  it  consisted  ;  and  2d,  by  the  entire  disuse  of  the  third  book, 
though  preserved  in  form. 

The  following  testimony  adds  to  the  surprise  of  this  result  in  the  inves- 
tigation of  the  committee :  that  while  a  part  of  this  important  system  of 
the  Treasury  Department,  designed  to  guard  and  preserve  the  public  rev- 
enue against  peculations  and  frauds,  has  been  permitted  to  fall  into  obliv- 
ion, and  another  fragment  of  it  has  been  continued  to  be  made  to  this 
day,  neither  the  part  abandoned  nor  the  i)art  continued  lias  ever  been 
known  to,  or  comprehended,  and  much  less  appreciated  in  use,  by  either 
the  head  or  any  subordinate  clerk  of  the  Treasury  Department.' 

Thomas  Dun^mi,  the  clerk  in  charge  of  the  quarterly  book,  and  refer- 
red to  in  the  preceding  testimony  of  Mr.  Woodbury,  being  examined  by 
Mr.  Cwr//,s,  testified  as  follows  : 

Question  10.  Have  you  sufficient  knowledge  of  the  nature  of  the 
weekly  and  monthly  returns  made  by  collectors  to  the  Secretary  of  the 
Treasury,  to  enable  you  to  say  whether  they  were  not  intended  both  for 
a  check  on  the  collectors,  and  also  to  enable  the  Secretary  to  make  esti- 
mates ? 

•Answer.  1  have  not.  They  have,  except  for  three  or  four  years  before 
the  burning  of  the  Treasury,  been  kept  by  other  persons. 

Question  11.  If  the  weekly  and  monthly  returns  would  enable  the  Sec- 
retary to  estimate  the  amount  of  money  he  coidd  calculate  upon,  would 


Rep.  No.  313.  85 

they  not  also  furnish  the  Secretary  a  check  upon  thecollector,  if  they  were 
carefully  compared  unt/i  the  quurlerly  return  honk  which  you  had 
chorge  of? 

Answer.  I  cannot  tell  how  thai  would  bo,  as  there  has  never  been  any 
conipnrison  that  I  know  of.     They  might,  if  honestly  niadc  out. 

Qwatioii  12.  Do  you  think  yourself  competent  to  give  an  opinion  con- 
cerning the  objects  for  wliich  the  weekly  and  montlily  returns  were  ori- 
ginally required,  or  concerning  the  use  that  was  made  of  them  by  the  Sec- 
retari'^s,  before  you  had  charge  of  the  quarterly  book  ? 

Answer.  I  do  not  tiiink  I  am. 

Question  13.  How  did  it  happen  that  the  entering  of  tiie  quarterly  re- 
turns of  collectors  on  the  book  of  quarterly  returns  in  the  Secretary's  of- 
fice was  discontinued,  and  when  was  it  disconlimied  ? 

Answer.  I  was  sick  ;  and  when  I  returned  to  the  office,  the  quarterly  re- 
turns were  taken  from  my  desk  by  the  Auditor's  clerk.  I  went  after 
them  ;  they  had  been  sent  (o  the  Register's  office.  I  coiisulted  Mr.  An- 
thony ;  lie  thought  they  were  not  of  much  use,  as  credits  were  so  short, 
and  I  never  entered  any  more  after  that.  This  was  the  second  or  third 
«[Liarter  of  1835. 

Question  14.  When  you  had  the  quarterly  .return  book,  and  when  you 
had  charge  of  the  "  weekly  returns,"  had  you  any  orders  to  do  any  thing 
with  them  except  to  enter  them  in  the  books? 

Answer.  Not  any. 

Air.  Young,  chief  clerk  in  the  Department  of  the  Secretary  of  the 
Treasury,  examined  by  Mr.  Curtis,  testified  as  follows: 

Questioji  22.  Can  you,  or  any  other  clerk  of  the  Depjirfment  known  to 
you,  in  the  Department,  speak  with  certainty  of  the  import^  c.ff^^ct,  and 
meaning  of  all  the  entries  in  the  "bond  book"  under  the  head  of  "col- 
lector of  New  York?"     Who  formerly  had  charge  of  it? 

Answer.  I  am  not  aware  of  any  clerk  who  is  conversant  to  a  sufficient 
degree  with  the  entries  in  the  book  referred  to,  who  could  satisfactorily 
explain  them.  Having  already  stated  what  I  believed  was  the  object  of 
requiring  the  returns  which  are  entered  therein,  I  have  never  had  occasion, 
myself,  to  make  myself  acquainted  with  the  manner  in  which  it  was  made 
up.     The  clerk  who  kept  it  for  many  years  died  in  December  last. 

William  B.  Randolph  examined  by  Mp.  Curtis. 

Question  1.  Are  you  employed  in  the  Treasury  Department?  What 
situation  have  you  held, and  what  situation  do  you  now  hold?  How  long 
have  you  been  connected  with  the  Treasury  Department? 

Answer.  I  am  employed  in  the  Treasury  Department  at  this  time  as 
chief  clerk  in  the  Treasurer's  otlice,  and  have  been  connected  with  the 
Department  in  several  offices  and  situations  for  nearly  thirty-one  years. 

Question  7.  From  the  examination  you  have  m.-ide  of  the  "  bond 
book"  from  the  Secretary's  otlice,  and  of  the  entries  therein,  can  you 
speak  with  certainty  of  the  import,  effect,  and  meaning  of  the  entries  of 
bonds  taken  at  New  York  ? 

Answer.  I  cannot  explain  them  all  satisfactorily  to  myself. 


86  Rep.  No.  313. 

Mr.  JVoodbiwy,  Secretary  nf  the  T?'casio'y,  examined  by  Mr.  Wise. 

Question  23.  Is  any  iDOok  of  registration,  in  the  nature  of  a  Icger  ac- 
count, or  other  transcript,  made  in  the  Department  of  the  Secretary  of  the 
Treasury,  of  the  momlily  returns  of  the  collector  of  the  port  oi  New 
York,  of  bonds  and  revenue  accruing ;  by  which  registration,  or  other 
transcript,  the  balances  or  difierences  in  said  monthly  returns  can  be  as- 
certained without  recurring  to  the  original  returns?  If  yea,  please  ex- 
hibit the  same  for  the  year  1S37  and  the  first  quarter  of  1S3S. 

*,^nswer.  1  am  not  aware  that  any  book  of  registration  of  those  returns 
is  now  kept  up  or  made  in  the  Department.  I  have  not  been  accustomed 
to  resort  to  it  or  examine  it,  if  one  is.  J3ut  vvhen  I  have  had  occasion  to 
know  the  aggregates  in  any  of  the  weekly  or  monthly  returns  after  they 
passed  out  of  my  own  hands,  I  have  sent  for  the  returns  themselves,  and 
obtained  the  information  v/anted  from  them.  My  im])ression,  at  the  same 
time,  is,  tliat  sucli  a  book  was  formerly  kept,  into  wiiich  these  aggregates 
were  copied,  but  that  the  copying  of  tliem  has  been  discontinued:  of  tliis 
fact,  however,  I  cannot  speak  witii  certainty  without  examination.  In  the 
great  amount  of  business  in  my  office,  and  the  extraordinary  increase  of 
it  during  the  past  three  or  four  years,  the  making  up  of  the  records  and 
entries,  and  the  immediate  regulation  and  disposition  of  the  hooks  iu 
which  they  are  made,  is,  from  necessity,  devolved  on  diHerent  clerks ; 
and  the  supervision  to  sec  that  they  are  made  in  season,  and  in  proper 
cases,  must  be  intrusted,  in  a  great  measure,  to  the  chief  clerk  in  the  of- 
fice, under  gcp.eral  in.structions  from  the  Secretary.  Whether  a  similar 
practice  was  not  always  in  existence,  the  older  clerks  in  the  office  will  be 
able  to  explain. 

James  If.  Sniooi,  a  clerk  in  the  Treasury  Department,  was  sworn  as  a 
witness. 

Exainined  by  Mj\  Curtis. 

Question  1.  Are  you  a  clerk  in  the  office  of  tlie  Secretary  of  the  Treas- 
ury, and  how  long  have  you  been  such  clerk  ? 

Answer.  I  am.  I  was  made  a  permanent  clerk  in  the  Department  un- 
der the  act  of  June  i.>3,  1836;  previous  1o  which  I  had  been  employed  for 
some  eigliteen  months  or  so  as  a  temporary  clerk. 

Question  2.  Have  you  charge  of  the  weekly  or  monthly  reluins  of 
collectors  made  to  the  Secretary  of  the  Treasury? 

,  JiuMvcr.  I  have  charge  only  of  absfr.icts  of  bonds  in  suit,  and  of  deben- 
tures, which  reach  the  Department  very  irregularly.  Such  as  have  reached 
my  desk  have  been  futhfully  preserved.  It  is  not  in  my  })ower  to  state 
certainly  any  thing  like  a  proportion  of  such  as  siiould  have  been  received, 
being  ignorant  of  the  business  of  the  custom-houses.  I  believe  they  are. 
required  once  a  month.     Some  of  the  collectors  make  returns  ''none." 

Question  ^.  What  are  your  orders  in  respect  to  these  returns  ?  Has 
the  Secretary  ever  called  for  them  since  in  your  possession  ?  Are  they 
I.vound  in  books,  or  are  they  loose  and  not  filed  or  endorsed  ? 

Jinsicer.  My  orders  were  simply  to  preserve  them  on  taking  possession. 
of  the  desk.  1  have  lately  received  directions  to  have  them  bound,  and  to 
continue  that  practice.  I  do  not  recollect  tliat  the  Secretary  has  ever  call- 
ed for  them.  I  am  satisfied  he  has  not.  They  are  loose,  and  not  bound 
in  books.^  They  are  not  endorsed,  save  that  most  of  them  in  lead  pencil 
naming  the  port. 


Rep.  No.  313.  87 

It  seems  to  be  the  opinion  of  the  present  Secretary  of  the  Treasury,  (un- 
der whose  ncliiiiiiistralion  this  iaiportaut  system  of  record-checks  has  beeu 
permitted  to  fall  into  neglect,  and  almost  oblivion,)  that  the  returns  of  col- 
lectors to  him,  from  which  it  is  made,  are  only  for  the  purpose  of  enabling 
him  to  obtain  a  vague  estimate  of  the  current  receipts  of  the  Treasury. 
This  may  explain  his  neglect  of  those  returns,  although  it  is  not  a  justifi- 
cation of  it.  But  if  this  were  their  acknowledged  and  sole  purpose,  it  is 
most  apparent,  from  the  testimony  before  the  committee,  that  such  a  use 
of  them  by  the  Secretary  has  been  but  inconsiderable  and  exceedingly 
sparing. 

The  fir  different  use  of  whicli  they  arc  susceptible,  and  which  w%is  once 
made  of  then;,  is  illustrated  in  the  following  examination: 

The  examination  of  Mr.  Ilandolph  hxj  Mr.  Curtis. 

Mr,  Curtis  exhibited  to  the  witness  the  following  extract: 

"  The  abstraction  of  the  amounts  paid  on  bonds  never  returned  as  liqui- 
dated, forms  about  one-half  of  the  entire  defalcation  of  the  late  collector 
at  New  York.  Of  the  other  moiety,  the  two  principal  items  are,  cash  held 
on  deposito  to  meet  uaascertaincd  duties,  and  cash  retained  ostensibly  to 
refund  duties  paid  under  protest. 

*•'  In  connexion  with  the  abstraction  of  those  sums,  as  well  as  of  those 
paid  on  bonds,  I  would  observe  that,  until. a  few  years  past,  the  accounts 
current  received  at  the  office  of  the  First  Auditor,  with  the  quarterly  ac- 
counts of  collectors,  w"ere  called  for  and  compared,  in  the  otiice  of  the 
Secretary  of  the  Treasury,  with  a  record  there  kept,  and  with  the  several 
returns  rendered  to  the  Secretary,  in  conformity  with  the  requisitions  of 
his  circular  dated  the  14th  of  October,  ISIS,  and  repeated  on  the  Mth  of 
November,  1S35. 

"  The  list  of  returns  thus  rendered  embraced  the  following: 

A  weekly  return  of  moneys  received  and  paid  ; 

A  monthly  return  of  debentures  paid; 

A  monthly  abstract  of  bonds  put  in  suit  during  the  month ; 

A  monthly  summary  statement  of  duties  collected  ; 

A  mont'niy  schedule  of  bon  is  taken  and  liquidated  during  the  month; 

A  quarterly  return  of  the  moneys  received  and  paid  under  the  acts  for 
the  relief  of  sick  and  disabled  seamen. 

•''  Those  exa/ni?talion<i  undco^n/mrisons  would, \\  is  conceived, be  greatly 
useful,  and  esj)ecially  when  it  is  considered  that  the  returns  thus  rendered 
to  the  Secretary  weekly  and  monthly  are  the  only  returns  of  the  kind  re- 
ceived by  the  Department  within  or  during  a  current  quarter. 

"  Should  it  be  deemed  proper  to  revive  the  practice,  it  is  suggested, to  ob- 
viate the  inconvenience. and  delay,  in  the  office  of  the  First  Auditor,  at- 
tending the  use,  in  the  office  of  the  Secretary,  of  the  accounts  current,  that 
the  collectors  furnish  those  documents  in  diqilicate. 

"I  have  the  honor  to  he.  very  respectfully,  sir,  your  obedient  servant, 

*'J.  N.  BARKER. 

"Hon.  Levi  Woodburv, 

Secretary  oj  the  Treasury .^^ 

Question  R  Will  you  please  to  examine  the  foregoing  extract  of  a  le'- 
ter  addressed  by  the  present  Comptroller  to  the  Secretary  of  the  Treasury, 


88  Rep.  No.  313. 

and  say  whether  or  not  you  concur  in  the  opinion  expressed  by  the  Comp- 
troller in  respect  to  the  utility  of  the  examinations  and  comparisons  men- 
tioned by  hnn,  and  whether  or  not  one  or  two  intelligent  clerks  could 
perform  that  duty  ? 

Answer.  The  returns  enumerated  in  the  foregoing  hst,  (considering  the 
*' statement  of  duties  collected^^  to  be  a  statement  of  all  duties  accrui/i!^ 
and  secured  in  the  ])eriod,)  .?ee;«  to  embrace  all  the  items  of  debit  and 
credit  which  could  arise  in  the  quarter.  If  they  do,  it  follows  that,  taken 
in  conn-ixion  witli  the  condition  of  the  account  for  the  previous  quarter, 
they  would  allbrd  the  means,  l)y  comparison,  of  ascertaining  the  general 
results  of  the  account  current  for  the  present  quarter.  The  xilUily  of  such 
comparison  would  depend  upon  the  advcmlage  gained  by  knowing  gen- 
eral results  at  an  earlier  period  than  they  could  be  obtained  from  the  set- 
tled account  ;  and  the  adcantdi^e  upon  the  degree  of  reliance  which  cou'd 
be  placed  upon  the  co)'rcclness  of  the  returns  In/elliij^c/il  clerks  would 
be  required  to  carry  on  this  business.  The  muTiber  necessary  would  de- 
pend upon  the  quantity  of  details,  which  1  camiot  well  estiuiate. 

To  the  same  point  may  be  cited  Mr.  Miller,  the  First  Auditor. 
Examined  by  Mr.  Dawson. 

Question  36.  Have  the  books  which  were  adopted  and  used  by  former 
Secretaries  of  the  Treasury  as  checks  on  collectors  of  the  customs,  viz: 
*'  Weekly  returns  of  receipts  and  payments  of  collectors  of  trie  customs," 
<'  Collectors'  quarterly  accounts  current,"  and  "  Account  of  bonds  taken 
and  liquidated,"  been  regularly  attended  to;  or  have  they  fallen  into  dis- 
use and  been  neglected  for  the  last  four  or  five  years  ? 

Ansivtr.  There  do  appear  to  be  some  books  in  the  Secretary's  office 
that  seem  to  have  fallen  into  disuse  for  a  number  of  years  pjst.  The 
-condition  of  those  in  the  Auditor's  ollic^',  in  regard  to  the  bonds  taken  at 
New  York,  was  also  sulfered  to  fall  back,  as  has  been  fully  explnined. 

Question  37.  If  those  books  had  been  regularly  kept,  would  they  not 
have  furnished  means  to  detect  any  defalcation  of  any  collector  ofcustoms  ? 

Answer.  I  have  not  examined  the  books  alluded  to  with  care,  but  am 
of  opinion  that,  if  the  returns  required  by  the  several  circulars  of  the  Sec- 
retaries of  the  Treasury  to  be  made  to  the  Department  are  properly  en- 
tered and  compared  with  one  another,  any  material  error  or  fraud  prac- 
tised by  a  collector  must  be  discovered  soon  thereafter,  unless  the  naval 
officer  and  collector  and  their  clerks  should  combine  to  defraud  the  Gov- 
crniTient,  by  niaking  false  returns  of  the  real  amount  of  duties  secured 
within  the  quarter.  The  books  alluded  to,  I  understand,  were  used  to 
make  entries  in,  from  the  s:ud  returns. 

It  is,  then,  ascribable  to  a  want  of  ])roper  application  and  use  of  the 
means  actually  within  the  reach,  and  constituting  an  important  feature  in 
the  archives,  of  the  Secretary's  Department,  that  the  defalc;itions  of  Mr. 
Swartwout  escaped  detection  in  that  Department,  as  tli(7  did  in  the  subor- 
dinate departments  from  like  causes.  Whenever  these  means  have  been 
used  with  discrimination,  and  for  the  purposes  which,  in  the  opinion  of 
the  committee,  suggested  their  necessity,  (and  it  is  apparent  that  they  were 
sometimes  so  used  by  the  present  Secreiary,)  they  did  not  fail  to  lead  to  use- 
ful inquiry  and  explanation.     For  instance  :  in  disclosing  to  the  commit- 


Rep.  No.  313.  89 

tec  portions  of  official  correspondence  with  ^[r.  Swartwout,  the  fol- 
lowing letters  are  of  the  nmnber,  and  indicate  the  practical  worth  of  prop- 
er attention  to  the  returns  of  collectors  to  the  Secietary,  as  checks  \i\)on 
the  collectors,  in  conjunction  with  their  use  as  mcTc  estitnales  of  receipts  : 

Trkasiiuv  Department,  .'i'w^nM/  17,  1837. 
Sim  :  I  perceive  in  your  return  No.  31,  "of  moneys  received  and  paid," 
for  the  week  ending  the  5th  instant, the  sum  of  $92,196  3.5  for  payments  on 
account  of  "  revenue-cutters  and  boats,  contingencies,  &c.;"  and  also,  in  the 
succeeding  weekly  return.  No.  32,  the  additional  sum  of  S92,003  91  is 
charged  for  similar  objects.  As  expenditures  for  those  objects  have  been 
heretofore  but  small,  in  comparison  with  these,  and  as  there  is  some  press 
for  money  at  your  port,  I  will  thank  you  toinlbrm  me  of  the  cause  of  the 
great  increase  of  expenditures  for  these  purposes. 
I  am,  very  respectfully,  your  obedient  servant, 

LEVI  WOODBURY, 

Secretary  of  the   Treafiury. 
Samuki-  SwAf.TwouT,  E$q., 

Collector  of  the  Cust.Q7ns^  New  y^ork. 

CUSTOM-JIOUSK, 

Neiu  Fork,  Collector'' s  Office,  August  19,  1837. 

SiK  :  In  yourletter  of  the  17lii  instant,  received  this  morning,  it  is  stated 
that  in  No.  31  of  oiu'  -'weekly  retm-ns  of  moneyg,"  S92,19ti  35  is  char- 
ged to  payments'on  account  of"  revenue-cutters  and  boats,  contingencies, 
&:c. ;"  and  hi  No.  32,  S92,003  91  is  also  charged  for  sinlilar  objects. 

I  would  iirst  observe,  respectfully,  (to  correct  an  error,)  that  these  sums 
have  been  reversed  at  the  Department,  through  mistake,  as  it  will  be 
tbund  on  examination  of  the  returns,  that  in  No.  31  the  latter  aniotint  is 
given, ^and  in  No.  32  the  former  amount. 

With  regard  to  the  great  increase  of  these  sums,  I  have  to  state,  that  it 
is  owing  to  the  amount  of  Treasury  drafts,  and  which  are  thus  explain- 
ed :  On  the  credit  side  of  the  return  we  enter,  as  so  much  money,  the 
amounts  received  on  bonds  and  cash  duties  by  rliafts;  and  to  counterbal- 
ance these  sums,  we  charge,  on  the  opposite  side,  the  aggregate  amount 
of  the  drafts  themselves.  Biit  there  being  no  express  item  in  the  return,  to 
which  we  could  distinctly  apply  the  drafts,  they  were  placed  under  that 
of  "  revenue-cutters  and  bqats,  contitigencies,  &c." 

This  was  the  only  place  where  we  thought  proper  to  put  the  amount, 
unless  it  might  be  under  the  item  "  payments  on  account  of  collactions;" 
but  even  there  it  would  be  blended  with  other  sums. 

The  true  amount  in  No.  31,  of  payments  actually  on  account  of"  reve- 
nue-cutters and  boats,  contingencies.  &.c."  is  -  -  J54,S-14  17 
The  amount  of  Treasury  drafts       -             -                          -        87,159  74 


The  amount  in  No,  32  tor  the  same  object,  is  as  fallows : 


«92,003   9^ 

i54,096   68 
88,099   67 

«92,196   35 


90  Rep.  No.  313. 

If  our  course  should  be  disapproved,  we  nrjight,  for  tlie  present,  erase 

ihe  item  "  payments  in   bank  to  credit  of  Treasmer,"  and  over  it  write 

"  Treasury  drafts,"  and  opposite  place  the  amount ;  or  the  item  might  be 

n'.tcrlined,  as  would  be  best  preferred. 

I  have  tlie  honor  to  remain,  very  respectfullv,  vour  most  obedient  servant, 

SAMUEL  SWARTWOTJT,  Colled  or. 
Hon.  Levi  Woodburv, 

Secretary  of  the  Treasury. 

The  following  is  a  specimen  deduced  from  the  attention  in  practice  of 
the  present  Secretary,  to  the  monthly  returns  of  the  collector  at  New  York 
I  >  the  Secretary,  and  illustrating  how  effectual  these  returns  are  in  the 
detection  of  deficits  as  well  as  in  the  estimate  of  receipts  : 

Treasuky  Departmkxt,  March  15,  1838. 
Sir  :  Perceiving  that  the  amount  of  duties  received  at  your  port  during 
(he  month  of  February  is  much  smaller  than  was  anticipated,  I  will  thank 
you  to  explain  to  me  the  cause,  if  you  can  account  for  it.  By  the  exten- 
sion of  credit  for  nine  months,  under  the  first  section  of  the  act  of  the  16th 
of  October  last,  those  which  fell  due  in  the  latter  part  of  the  month  of 
May  preceding  would  become  payable  towards  the  close  of  February  last. 
Besides,  under  the  second  section  of  the  same  act,  allowing  a  credit  of 
t.h7'ec  and  six  months  upon  all  merchandise  subject  to  cash  duty  imported 
*'on  or  before  the  1st  day  of  November,"  the  three  months'  bonds  bearmg 
date  the  1st  of  the  last-mentioned  month  would  consequently  fall  due  in 
February.  Should  the  diminution  of  the  anticipated  amount  of  receipts 
from  duties  prove  to  be  owing  to  the  default  of  tlie  obligors  in  not  paying 
their  bonds,  you  will  be  pleased  to  state  the  amount  of  such,  together  with 
ar.y  other  facts  tending  to  throw  light  upon  the  subject. 
I  am,  very  respectfully, 

.   LEVI  W00D15URY^ 
Secretary  of  the  IVea.rury. 
Samuel  Swautwout,  Esq. 

Collector  of  the  Cnstonis,  Neiv  Yo7-k. 

CUSTOM-HOL'SE,  NeW  "^'oRX, 

Collector's  Office,  March  17,  1838. 

Sir:  In  answer  to  your  letter  of  the  L^th  instant,  inquiring  into  the 
C3uses  of  the  discrepancy  between  the  amount  of  duties  received  at  this 
port  during  the  month  of  February  last  and  the  amount  that  was  anti- 
c-ipated,  I  have  to  observe,  that  whatever  difference  exists  has  arisen  out 
of  some  error  in  estimating  the  amount  ])ayable,  and  not  from  any  actual 
or  material  difference  between  the  amount  accruing  and  the  amount  paid. 
Of  the  bonds  which  fell  due  from  the  16th  to  the  31st  May 

last,  there  were  extended     -----     ^290,000 
Of  this  sum,  there  have  been  j)Ut  in  suit  -  -  15,000 

Thas  leaving  -  -  -  -  -  -        ii75,000 

Under  the  second  section  of  the  act  of  16th  October  last,  there 

were  taken  and  paid,  due  in  February         -  -  -     iSl  10,000 

385,000 


Rep.  No.  313.  91 

The  ordinary  three  months'  bonds  taken  m  November  last, 

and  due  and  paid  in  February,  were           -             -             .  7.'5,00O 

Total                ...             -  .$460,000 


By  ihc  above,  it  appears  that  tiie  bonds  which  were  payable  in  Fcl>niary 
have  been  collected,  with  the  exception  of  an  amount  of  Si 5.000.  which 
has  been  put  in  suit;  and  that  the  whole  amount  payable  did  not  amount 
to  jS500,000. 

The  residue  of  our  receipts,  as  per  tlie  returns  in  February,  were  com- 
posed of  cash  duties,  bonds  in  suit  paid,  and  ititerest  on  extended  bonds. 
I  have  t!ie  honor.  &c. 

SAMUi:L  SWARTWOUT, 
Hon.  Levi  Woodburv,  Cot  lector. 

Secretary  of  the  Treasitry. 

In  tjie  opinion  of  the  committee,  had  the  same  scrutiny  of  Mr.  .Swart- 
wout's  retiu'ns  to  the  Secretary  been  imiformly  made  in  his  office,  as  Iry 
the  preceding  letters  it  is  apparent  was  made  occasionally,  the  legitimate 
purposes  of  those  returns  would  have  been  accomplished,  and  Swart- 
woul's  defalcations  could  not  liave  escaped  detection  beyond  the  termina- 
tion of  the  first  ([uarter  in  whicii  they  originated. 

It  may  be  remarked,  that  in  the  tostimonj"  of  the  Secretary,  as  of  that 
of  his  chief  clerk,  which  repudiates  the  use  (on  the  ground  of  their  being 
valueless  to  detect  defalcations)  of  the  records  deemed  so  essential  in  the 
opinion  of  so  many  individuals  who  have  preceded  themselves  in  office, 
there  is  to  be  found  also  the  jnoof  that  no  use  of  these  records  had.  at  any 
time  prior  to  Swartwout's  defalcation,  been  attempted  by  the  Sfcretary, 
or  any  otlier  person  in  office  under  him.  While,  tlierei"ore,  the  one  branch 
of  this  testimony  seeks  to  found  an  opinion. that  is  to  serve  as  an  apology 
for  the  neglect  of  a  palpable  duty,  the  other  branch  divests  that  opinion 
of  all  claim  to  actual  experience  in  the  u^e  of  the  thing  it  repudiates,  and 
must  proportionally  weaken  any  reliance  that  otherwise  might  be  placed 
upon  it. 

In  this  connexion,  it  should  also  be  remarked,  that,  since  the  discovery 
of  Mr.  Swartwout's  defalcations,  the  same  comparison^  for  wliich  the 
neglected  records  in  the  Secretary's  Department  are  believed  by  the  com- 
mittee to  have  been  instituted,  llave  been  revived  for  future  observance 
by  the  Secretary.  The  results  of  negligence,  and  not  those  of  experience, 
liave  been  the  sources  from  whence  lessons  of  prudence  have  been  derived, 
but  too  expensively  to  the  Government,  in  this  instance.  Tlie  subjoined 
answer  to  the  eighteenth  interrogatory  propounded  to  Mr.  IVoodbirry  by 
Mr.  Wise  elucidates  these  })articulars  : 

"The  entry  of  the  amount  of  the  quarterly  accounts  of  collectors  in  a 
book  was  discontinued  in  November,  18.'j5,  and  is  stated  by  the  Audiior 
to  have  happened  in  consequetice  of  one  of  his  clerks  not  sending  them 
for  tliat  purpose  to  the  clerk  keeping  the  book  here,  because  they  were 
detained  by  him  too  long. 

''  But  this  discontj nuance  wns  v.evcr  reported  to  tiie  Secretary  of  the 
Treasury,  either  by  the  Auditor,  or  the  clerk  keeping  the  book,  till  last 
November  or  December.  When  it  was  reported,  I  deemed  it  proper,  till 
Congress  made  some  legal  provisioii  on  the  subject,  to  adopt  their  sug. 


92  _  Rej).  No.  313. 

gestioiis.  and. ascertain  if  any  benefit  would  result  from  such  comparisons, 
f  therefore  requested  the  Auditor  himself  to  report  to  me  weekly,  not 
only  the  balances  on  the  accounts  as  rendered,  (which  alone  did  not  seem 
likely  to  afford  much  aid  in  detecting  defaults,  if  a  comjiarison  was  insti- 
Tuled,)  but  to  report  the  balances  found  due  on  Ihe  final  settlements. 
And  1  have  since  retjuested  him  to  report  explanations  as  to  those  balances 
when  large  or  unusual. 

"  Whether,  after  this,  any  comparisons  in  my  own  oliice,  between  those 
;5.nd  the  weekly  abstracts  wliich  I  have  directed  to  be  made,  will  ever  lead 
to  any  detection  of  such  defaults  as  escape  the  accounting  oificers,  is  some- 
what problematical,  for  reasons  stated  in  document  No.  69. 

"  But  I  deemed  the  effort  proper,  luider  the  opinions  expressed  by  those 
officers." 

The  foregoing  testimony  renders  it  certain  that  a  revival  of  the  com- 
])arisons  resorted  to  under  other  administrations  of  the  Department,  is 
now  made  designedly.  The  Avhole  testimony  is  equally  explicit  that 
the  records  for  such  comparisons  were  not  discontinued  designedly,  but 
little  by  little,  through  the  slow  and  dull  process  of  oversight  and  neg- 
lect— oversight  in  regard  to  the  value,  and  neglect  in  regard  to  the  actual 
use  of  the  records. 

It  was  undoubtedly  by  means  here  adverted  to  that  Mr.  McLane, 
while  Secretary  of  the  Treasury,  was  induced  to  call  for  an  explanation 
of  Mr  Swartwout,  of  a  large  outstanding  balance  which  appeared  upon 
!iis  quarterly  account  at  one  period.  In  the  testimony  of  M?-.  Shultz, 
former  auditor  of  the  custom-house  under  Mr.  Swartwout,  answer  6, 
the  circumstance  is  thus  adverted  to  : 

<'  Soon  aftqr  Mr.  L.  McLane  came  into  oliice  as  Secretary  of  the  Treas- 
ury, he  sent  to  the  Comptroller  for  the  accoitnt  current  of  the  collector  of 
New  York  for  the  preceding  quarter,  and,  observing  therein  a  large  bal- 
ance due  to  the  United  States,  Avrote-  Mr.  Swartwout  a  letter,  the  sub- 
stance of  which  was — 'Mr.  Collector,  I.  perceive  by  your  last  account 
ciuTent  that  you  arc  indebted  to'the  United  States  in  a  large  sum.  Please 
to  deposite  that  sum  in  the  Branch  Bank  to  the  credit  of  the  Treasurer 
of  the  United  States,  and  send  on.  the  receipt  therefor  without  delay.' 
Mr.  Swartwout  referred  this  letter  to  me,  with  the  request  that  I  would 
give  an  accotmt  of  that  balance,  saying  he  was  not  aware  of  being  in- 
debted to  the  United  States  in  any  sum.  *  I  took  the  necessary  custom- 
house books  home  withme,Scit  up  a  great  part  of  the  night,  and  rendered 
an  account  of  every  item  making  this  balance.  This  account  was  next 
morning  sent  to  tlie  Secretary  of  the  Trccisury,  who,  not  understanding 
the  manner  in  which  the  cuslom-house  books  were  kept,  sent  this  state- 
ment to  the  Comptroller's  office,  with  the  request  that  it  might  be  exam- 
ined by  the  clerks  in  the  ('(nnptrolier's  department,  and  be  reported  to  the 
Secretary.  The  statement  was  found  correct  of  the  items  of  the  balance, 
without  a  difference  of  a  single  cent.  This  same  statement  is  probably 
now  in  tlie  office  of  the  Secretary  of  the  Treasury,  if  not  burnt.". 

The  great  probability  that  an  habitual  recourse  by  tlse  Secretary  of  the 
Treasury  to  a  condensed  record  of  the  accounts  of  collectors,  such  as  was 
heretofore  kept  in  the  Secretary's  Department,  would  latterly,  as  it  did  in 
the  days  of  Mr.  McLane,  have  arrested  the  attention  of  a  prudent  and 
energetic  officer,  may  be  readily  estimated  by  the  extraordinary  manner 
m  which  the  quarterly  balances  of  Mr.  Swartwout's  accounts  for  "cash 


Rep.  No.  313. 


93 


543,204 
856,019 


4.1 


6' 


9:j 


5- 


retained"  and  for  "amount  of  duties  credited  and  not  yet  paid,  and  sus- 
pended accounts,"  liave  been  permitted  to  grow  and  enlarge,  unchecked, 
within  the  last  few  years.  The  following  is  an  illustration,  not  of  wliat 
came  to  the  knowledge  of  the  present  Secretary,  hut  of  what  would  have 
reached  liirri  had  "  /he  records^'  of  his  oliicc  bef^n  perpetuated,  estimated. 
and  used. 

By  the  testimony  of  Mr.  Flemins^,  auditor  of  the  custom-house,  (sec 
Committee's  Journal.)  it  appears  that  Mr.  Su  artwout  liad  charged  to  the 
Government,  in  his  accounts,  items  as  follows  : 

"  Amount  of  duties  credited  and  not  yet 

paid"  -  -  -         '    -    $206,919  0^ 

"  Amount  of  duties  credited  and  not  yet 

paid"  -  -  -         '    -      295,416  84 

"  Amount  of  duties  credited  and  not  yet 

paid"  -  -  -         '    -      553,178  74 

"Amount  of  duties  credited  and  not  yet 

paid,  suspended  accounts,  &c."  -      374,343 

''  Amount   of  unsettled   dudes   on   dc- 

posite,  unsettled  accounts,  &c." 
"  Amoimt   of   unsettled   duties  on   de- 

posite,  unsettled  accounts,  &:c." 
"  Amount   of  unsettled  duties   on   de- 

posite,  unsettled  accounts,  &c."  -  1,053,531 

''  Amount   of  unsettled   duties   on   de- 

posire,  unsettled  accounts,  &c."  -  1,168,116  44 

"  Amount   of  unsettled   duties  on   de- 

posite,  unsettled  accounts,  &c."  -      675,693  4H 

"Amount  of  unsettled  accounts,  duties 

on  deposites,  &.c."     -  -  -      577,493  23 

"  Amount  of  unsettled  accounts,  duties 

on  deposite,  &c."       .  -  -      516,331   Oo 

''  Amount  of  unsettled  and  suspense  ac- 
counts" -  -  -  -      532,390   G9 

And,  in  the  same  quarterly  accounts,  the  following  items: 
"Cash  retained  the  31st  March,  1S35" 
"Cash  retained  the  30th  June,  1S35" 
"  Cash  retained  the  30th  September,  1835 
"  Cash  retained  the  31st  December,  1835' 
"  Cash  retained  the  31st  March,  1836" 
"  Cash  retained  June  30th,  1836"   - 
"  Cash  retained  September  30th,  1836" 
"  Cash  retained  December  31st',  1836" 
'■•  Amount  retained  March  31st,  1837" 
"'  Amount  retained  June  30tli,  1837" 
"  Amount  retained  September  30th,  1837' 
"  Amount  retained  December  3lst,  1837'' 

The  fact  that  the  incumbents  of  the 


1st  quarter,  1835. 
2d  quarter, 
3d  quarter, 
4th  quarter, 
1st  quarter,  1836. 
2d  quarter, 
3d  quarter, 
4th  quarter, 
1st  quarter,  1837. 
2d  quarter, 
3d  quarter, 
4th  quarter, 


46 
32 
19 
17 
02 


70,832 

56,111 

'      -    .  -    14,083 

-  108^349 

-  145,675 

-  159,933  08 

-  152,579  43 

18,763  53 
31,528  01 

-  117,842   15 

49,295  54 
79,231   56 

two  accountinar  olTices  in  the 


Treasury  were,  as  represented  in  the  annexed  examination  of  the  Secre- 
tary of  the  Treasury,  borne  down  by  age  and  infirmity,  furnishes,  per- 
haps, some  explanation  why  less  attention  was  devoted  to  the  extraor- 
dinary balances  contained  in  Mr.  Swartwout's  preceding  quarterly  and 
weekly  returns  than  otherwise  might  have  been  in  those  oftices;  but  the 


94  Rep.  Xo.  313. 

same  consideration,  notorious  as  it  was,  \rould  seem  to  have  dcmarided 
f^reater  watchruhicss  and  particularity  in  the  })rinci})al  superintendent  of 
tl)e  revenue,  the  Secretary  himself. 

Mr.  JVoodbnry  exatniiicd  bi/  M)\  Owens. 

Question  o5.  Wlio  h<;id  tlie  oflices  of  First  Auditor  and  Comptroller  at 
the.  time  these  defalcations,  or  the  greater  part  of  them,  occurred?  Were 
you  personally  acquainted  with  them  ?  Vv'erc  they  competent,  pliysically 
and  mentally,  to  discharge  the  duties  of  their  respective  offices  ?  Did  you 
•  ;ver  suggest  to  the  President  of 'the  United  States  the  great  importance  of 
having  conjpetent  men  in  those  offices,  and  the  circumstances  under  which 
you  made  the  suggestion  ? 

..■in.siDcr.  Judge  Anderson  held  the  office  of  Comptroller  for  many  years 
previous  to  IS.'JG,  and  resigned,  I  think,  in  the  summer  of  tliat  year. 
Richard  Harrison,  Esq.,  also  held  tlie  office  of  First  Auditor  a  great  num- 
her  of  years  hefore  >Jovember,  1S36,  when  he  also  resigned.  I  was  well 
acquainted  with  them  after  1S34.  They  were  both  gentlemen  very 
niuch  advanced  in  life — I  think  over  seventy  years  of  age;  and  they  had 
suifered  (and  especially  the  former  one)  from  the  infirmities  incident  to 
their  great  age  and  long-continued  labors.  But  they  were  both  men  of 
)nueh  worth  and,  fidelity  ;  and  hence,  though  less  able  tlian  in  former 
years  to  meet  the  calls  on  them  of  the  usual  business  of  their  respective 
bureaus,  and'much  more  the  increasing  calls  and.  business  of  1835,  and 
especially  1S3G,  the  Department  felt  reluctant  to  advise  their  removal  on 
account  of  the  cx)m[)lain(s  sometimes  made  of  their  increasing  infirmities 
and  disainlities.  Dut  after  several  conferences  on  the  subject  with  the 
President,  I  understood  that  they  both  agreed  to  resign,  and  did  so  at  the 
times  mentiojied;  but  without  tke  slightest  complaint  or  reproach  as  to 
r.heir  integrity  and  disposition,  while  in  office,  to  exert  all  the  vigilance, 
energy,  and  labor,  of  which  they  v/ere  capable. 

From  the  following  testimony  of  WiUiani  B.  Handolph,  now.  chief  clerk 
in  the  office  of  Treasurer,  it  appears  that  balances  so  extraordinary  were 
sufficient  to  arrest  the  attention  and  excite  the  astonishment  of  subordi- 
nates in  office. 

Examined  by  Mr.  Curtis. 

Question  2.  Have  you,  at  any  time,  while  employed  in  the  Comptrol- 
ler's office,  examined  the  quarterly  returns  of  Samuel  Swartwout,  late 
collector  of  New  Yorlc  ?  If  yea,  for  what  year  were  those  returns  which 
you  exa)nined  :  and  was  there  any  feature  in  the  accounts  which  attracted 
yoiu-  attention  ? 

^inswer.  During  parts  of  the  years  1S35  and  lS3(i  1  Avas  employed  in 
the  Comptroller's  office  to  revise  the  accounts  of  collectors  north  of  the 
Potomac;  among  them,  the  accounts  of  Samuel  Swartwout,  late  collector 
of  New  York.  His  accounts  for  the  last  (juarters  of  1S35  and  the  account 
for  the  first  quarter  of  1S36  passed  under  my  inspection;  in  these  I  no- 
ticed the  iarqe  and  increasing  balances  of  cash  on  hand,  amounting,  on 
the  31st  March,  1S3G,  to  nearly  v?700,000 ;  for  which  1  was  not  aware  of 
any  sutlicient  reason. 

Question  3.  Did  you  mention  this  fact  to  any  person,  and  to  whom  ? 

Jjiisiver.  I  spoke  of  this  circumstance  frequently  among  my  fellow- 
clerks  as  affording  Mr.  Swartwout  a  fine  opportunity  for  accommodating 
his  friends,  and  perhaps  benefiting  himself;  and  I  iQiil  confident  that  1 


Rep.  No.  313.  95 

mentioned  the  fact  to  Mr.  Laub.  the  then  chief  clerk,  who  frequently 
acted  as  Comptroller;  but  I  did  not  otherwise  speak  of  it  in  a  manner 
calculated  to  excite  the  attention  of  )uy  superiors. 

The  House  will  discover,  by  recurring  to  the  form  of  weekly  record  oi 
returns  from  collectors,  formerly  kept  in  the  Secretary's  oiiice,  so  minute 
was  the  care  then  deemed  essential  to  the  security  of  the  revenue,  thra 
one  column  was  devoted  specially  to  recording  the  day  on  which  such 
weekly  returns  were  received  at  the  Department.  A  day's  omission  of 
duty  in  these  returns  iken,  was  liable  to  immediate  detection  ;  and  the  care 
with  which  Mr.  Gallatin,  while  Secretary  of  the  Treasury,  enjoined  the 
<iuty  of  collectors  to  have  their  returns  ''bear  date  re^idarly  the  last  daj 
of  the  week,  and  Include  only  the  whole  of  the  receipts  of  payments  for 
the  entire  week,  the  said  last  day  included,^'  may  also  be  appreciated  by 
recurring  to  the  circular  of  that  energetic  and  distinguished  financier,  alj<a 
given  in  the  early  part  of  this  division  of  the  committee's  report.  Ho.v 
offectually  this  same  scrutiny  would  have  checked  t!)e  earliest  misuse  of 
the  public  money  by  Mr.  Swartwout  is  apparent,  when  it  is  considered 
that  the  whole  of  it  was  covered  up  and  concealed  prior  to  18.37  by  uni- 
formly omitting  in  his  weekly  returns  the  official  recei})ts  of  Saturday,  and 
not  forwarding  his  returns  until  the  following  Monday,  and  frequently 
not  until  Tuesday  of  the  succeeding  week;  thus  gaining  the  receipts  of 
from  two  to  four  days  with  which  to  replace  his  prior  deficits.  The  mis- 
taken estimate  by  the  present  Secretary  of  the  utility  of  this  precision  o:\ 
the  part  of  the  Treasury,  is  easily  measured  by  the  advantage  which  L*^ 
now  seen  to  have  been  taken  by  Mr.  Swartwout  of  the  absence  of  it. 
The  ])racticc  of  Swartwout,  in  this  particular,  will  be  found  illustrated  i:* 
the  following*  examination  of  Mr.  Phillips,  late  assistant  cashier  of  the 
customs;  and  the  indulgence  of  it,  through  the  negligence  or  want  of  a 
just  estimate  of  it  by  the  present  Secretary  of  the  Treasury,  is  no  ler;: 
clearly  brought  to  view  in  the  testimony  which  is  also  subjoined  hereto. 

Mr.  Phillips  examined  by  Mr.  Curtis. 

Question  33.  In  your  statement,  contained  in  your  letter  of  the  f)th  if 
November,  1S3S,  addressed  to  Mr.  Gilpin,  you  say,  at  the  close  of  the  let- 
iter:  ''  By  reference  to  the  weekly  returns  made  to  the  Treasury  Depart- 
ment, it  will  be  seen  that  iarge  amounts  were  frequently  retained,  under 
the  head  of  '  am.ount  Awe  the  United  States,  to  be  carried  to  next  returiv/ 
which  accounts  have  the  signature  of  Mr.  Swartwout ;  and,  in  many  in- 
stances, would  not  be  forwarded  until  Tuesday,  in  order  that  the  collec- 
tions of  Saturday  and  Monday  mi^ht  place  him  in  funds  to  make  the 
transfer  from  his  account  to  that  of  the  Treasury  of  the  United  States.*' 
Pleasi-!  state  whether  it  was  a  frequent  practice  to  delay  the  weekly  re- 
turns required  by  the  Secretary  to  be  made  on  Saturdo.y,  and  not  to  sen;i 
ihem  forward  until  Tuesday ;  and  when  that  practice  began  ? 

Answer.  It  was  the  rule  of  the  office  to  make  uj)  t!ie  weekly  return 
<,'arlyon  Monday  of  each  week,  and  it  embract^i  all  the  collection  of  bonds 
up  to  Friday  afternoon  :  consequently,  the  bonds  falling  due  on  Saturday 
and  Sunday,  and  payable  on  Saturday,  would  not  appear  on  the  account 
until  the  following  week.  It  was  the  frequeilt  p«-actice  to  delay  the 
weekly  retin-n  until  Tuesday;  and  it  commenced,  I  think,  in  1833  or  1834. 

Question  M.  Until  the  banks  suspended  spenie  payments,  and  the  col- 
kctor  was  ordered  to  withdraw  the  bonds  from  the  banks  and  collect  therri 


96  Hep.  No.  313. 

at  the  custom-house,  was  it  not  the  practice  of  Mr.  Swartwout  to  pay  over 
io  the  credit  of  the  Treasurer  of  the  United  States,  weekly,  nearly  all  the 
money  in  his  hands;  and  docs  not  this  appear  from  the  weekly  returns? 

Ansxvcr.  It  was  the  practice,  initil  the  banks  suspended  specie  pay- 
ments, for  Mr.  Swartwout  to  pay  over  to  the  credit  of  the  Treasurer  of 
the  United  States,  weekly,  nearly  all  the  moneys  i'n  his  hands;  and  it  docs 
appear  in  the  weekly  returns.  After  the  suspension  of  specie  payments, 
Mr.  Swartwout  retained  all  the  moneys  collected  in  his  own  hands,  (ex- 
cept iS70,000  in  specie,  transferred  to  the  credit  of  the  Treasurer,)  and  the 
same  continued  to  accumulate  until  he  retired  from  office. 

Mr.  Woodbury  examined  by  Mr,  Curtis. 

Quesiion  28.  Do  you  remember  to  have  noticed  that  Swartwout  got 
:nto  the  practice,  during  the  last  year  or  two  of  his  term  of  office,  of  omit- 
ting to  despatch  his  weekly  returns  from  the  custom-house  until  Tuesday? 

^'inswer.  I  do  not  remember  to  have  noticed  any  general  change  on  that 
subject ;  nor  sliould  I  be  likely  often  to  notice  the  difi'erence  of  a  single 
day  in  their  arrival,  as  the  alterations  in  the  mode  of  transporting  tiie  mail, 
and  in  its  general  speed,  and  the  interruptions  in  the  hours  of  arrival,  have 
been  frequent,  and  accidents  both  in  tlie  custom-house  and  the  post  oflice 
in  New  York  and  this  city  may  occasionally  ali'ect  the  arrival  or  delivery 
of  the  letter  here  for  twenty-four  hours.  But  from  so  large  a  port  as  New- 
York,  and  especially  since  the  suspension  of  specie  payments,  I  should 
notice  tv/o  or  three  days'  omission.  The  times,  or  days,  when  the  returns 
were  actually  mailed  or  despatched,  do  not  appear  on  the  face  of  the  re- 
turns: and  the  wrappers  showing  when  the  package  was  mailed,  but  not 
always  with  accuracy  the  day  it  was  left  in  the  post  ofli«e,  and  thus  de- 
spatched by  the  collector,  are  not  taken  ofl'  and  inspected  by  me,  but  are 
removed  by  a  messenger;  after  that,  the  returns  themselves  are  examined 
by  me  in  p)erson. 

Question  29.  During  the  time  Mr.  Swartwout  was  hi  office  as  collectofr 
did  you  regard  the  "  weekly  returns  of  cash  received  and  paid  out  at  the 
custom-house"  as  including  the  cash  paid  for  bonds  and  cash  duties  on 
the  several  Saturdays  on  wliich  those  returns  are  dated  ? 

*.^nsioer.  If  my  attention  was  ever  turned  to  that  particular  point,  J 
could  state  what  my  opinion  was,  provided  it  was  expressed  in  writing; 
but  I  do  not  remember  that  the  question  ever  arose.  Looking,  however, 
to  the  circular  reciuesting  the  weekly  returns,  and  to  the  period  when  the 
return  are  received  at  this  office,  I  should  suppose  tliey  were  intended  to 
embrace  the  receipts  of  Satiuday,  as  well  as  every  other  day  in  \he  week.. 

Queftlio)i  'M).  if  the  weekly  returns  included  only  tlie  cash  received  for 
oonds  paid,  and  cash  duties  received  up  to  Friday,  inclusive,  on  what  day 
thereafter  ought  those  returns  ordinarily  to  have  come  to  your  hands,  as 
Jie  maifs  have  run  for  the  last  two  years  ? 

J}u3wer..  If  they  were  made  out  after  the  close  of  business  on  Friday,, 
and  mailed  that  night,  they  could  reach  here  by  Sunday  or  Monday  eve- 
ning, I  supjjose ;  though  my  recollection  as  to  the  speed  of  the  mails,  or 
the  hours  of  departuie  of  them  from  New  York,  during  the  whole  of  the 
two  years,  is  not  v(!ry  accurate.  They  would,,  then,  if  delivered  punctu- 
ally at  the  post  office  here  to  the  messenger,  reach  my  office  Monday  or 
Tuesday  morning.  But  I  think  tiiey  are  not  generally  received  in  the 
office  here  till  Wednesday  morning. 


Rep.  No.  313.  97 

There  is  another  feature  in  the  policy  which  appears  to  have  been  pur- 
sued by  the  Secretary  of  the  Treasury  towards  Mr.  Swartwout,  which  is 
deserving  the  consideration  of  the  House.  It  consists  in  the  fact,  that 
while  the  Seor(;tary.  through  the  Comptroller,  acquiesced  in  the  claim  oi 
Mr.  Swartwout  to  retain,  under  pretence  of  indemnity  for  duties  to  be  re- 
funded by  him  to  merchants  who  had  paid  them  to  him  under  protest,  the 
large  sum  of  !S201,000,he  acceded  to  the  provision  of  means  by  the  Comj)- 
troller  for  the;  successor  of  Mr.  Swartwout  to  refund  those  same  duties. 
It  is  true  that,  on  being  informed  by  the  successor  of  Mr.  Swartwout  that 
he  had  borrowed  of  the  latter  the  sum  of  ^25,000  for  the  purpose  of  these 
payments,  the  Secretary,  under  date  of  April  21,  1838,  expressed  a  hope, 
in  reply,  "  that  Mr.  Swartwout  Avould  consider  that  sum  as  a  payment  to 
that  extent  on  account  of  the"  $201,000  due  the  United  States  then  in 
his  hands.  It  is  likewise  true  that,  being  informed,  on  the  2d  of  May 
following,  by  the  successor  of  Mr.  Swartwout,  that  the  ^25,000  borrowed 
of  the  latter  had  been  repaid,  the  Secretary,  under  date  of  June  12,  ex- 
pressed himself  as  follows:  "The  duties  refunded  under  old  protests  will, 
it  is  hoped,  be  paid  by  your  predecessor  out  of  the  money  he  retains  for 
his  indemnity." 

It  is  not  clear,  from  any  evidence  attainable  by  the  committee  from  the 
Secretary  of  the  Treasury,  or  any  other  Treasury  officer,  what  moneys 
were  refunded  by  Mr.  Swartwout's  successor,  upon  the  before-named 
claims.  But  it  is  manifest,  from  the  correspondence,  that  the  sum  thus 
in  effect  permitted  to  be  drawn  a  second  time  from  the  public  moneys  is 
of  large  amount,  and  that  Mr.  Swartwout  was  compelled  to  contribute 
towards  it  a  sum  only  about  equal  to  ^8,000.  It  is  difficult  to  perceive 
a  proceeding  more  strongly  characterized  by  the  absence  of  that  energy 
and  vigilance  which  are  so  essential  at  all  times  to  the  security  of  the 
public  treasury,  and  most  desirable  of  all  to  be  found  in  the  head  of  the 
tinancial  department  of  the  Government. 

While  the  committee  entertain  the  oj)inion  that  cases  of  defalcation 
among  revenue  officers  may  arise,  respecting  which  the  Secretary  of  the 
Treasury  ought  not  to  be  regarded  as  in  any  degree  in  fault,  they  are 
far  from  believing  that  cases  of  defalcations  may  not  arise,  in  which  the 
Secretary  should  be  regarded  as  alike  Responsible  with  his  subordinate 
accounting  officers.  A  just  principle  is  believed  to  have  been  advanced 
upon  tliis  subject  by  tlie  committee  of  the  House  of  Representatives 
appointed  to  examine  into  the  condition  of  the  Treasury  in  1801.  In 
the  report  of  that  conmiittee  it  is  said  :  "  It  is  the  immediate  duty  of  the 
Comptroller  to  superintend  the  adjusting  of  the  public  accounts,  and  to 
direct  prosecutions  for  all  delinquencies  of  officers  of  the  revenue,  and  for 
debts  due  to  the  United  States,  though  tjie  Secretary,  in  virtue  of  his  au- 
thority as  superintendent  of  the  collection  of  the  revenucj  would  be  also 
responsible  for  the  permission  of  any  negligence  or  abuse  of  trust  in  the 
officers  of  the  revemie,  and  receivers  of  public  money,  after  the  same 
should  come  to  his  knowledge."  The  knowledge  of  Swartwout's  defal- 
cation by  the  superintendent  of  the  revenue,  and  to  each  accoimting  offi- 
cer of  the  Treasury,  camiot  surely  be  controverted  after  the  period  when  it 
was  known  that  S201,000  had  been  retained  by  him  under  the  pretence 
of  refunding  protest  money,  and  that  he  had,  notwithstanding,  so  neglect- 
ed and  refused  to  apply  the  fund,  as  to  compel  the  Treasiuy  of  the  United 
States  to  satisfy  the  same  protests  from  its  separate  and  subsequently  ac- 
cruing resources. 


98  Rep.  No.  313. 

The  committee  will  forbear  to  recapitulate  here  the  extraordinary 
submissivcness  and  want  of  energy  that  are  betrayed  by  the  Secretary  of 
the  Treasury,  in  his  loleiance,  wiiliout  known  complaint  made  to  the  Ex- 
ecutive, of  the  retention  and  use  of  the  public  money  collected  by  the 
present  collector  at  New  York  for  duties  on  imports  against  and  under 
the  protests  of  merchants.  The  correspondence  between  the  Secretary 
and  said  collector  on  this  subject  has  been  already  incorporated  in  detail 
in  a  prior  division  of  this  report,  relating  to  the  correctness  of  the  returns 
of  the  collector,  and  need  not  again  be  presented.  lUu  it  is  most  appa- 
rent, from  that  correspondence,  that  such  retention  and  use  of  the  public 
money  by  said  collector  is  not  only  against  the  letter  and  spirit  of  the 
revenue  laws,  but  also  against  the  solemn  opinions  ot'duty  communicated 
to  the  collector,  of  the  Secretary  of  the  Treasury,  and  of  the  Attorney 
General  of  the  United  States.  And  yet  the  collector  is  permitted  to  exe- 
cute the  law  only  as  he  understands  it.  In  fact,  as  well  as  in  example, 
this  submission  of  the  hi52;her  to  the  subordinate  officers  charged  with  a 
due  execution  of  the  laws,  is  derogatory  to  the  Government  and  most 
pernicious  to  the  public  interests.  It  is  believed  to  constitute  an  imbe- 
cility of  administration  on  the  jiart  of  the  Secretary  that  calls  for  imme- 
diate correction,  whether  regard  be  had  to  the  honor  of  the  Government 
or  to  the  security  of  the  public  inojiey,  * 

From  the  preceding  evidence,  the  committee  report  as  established  facts: 

1st.  Thnt,  of  late  years,  important  books  of  record,  designed  to  contain 
a  condenspd  statement  of  the  accounts  and  liabilities  of  collectors  of  cus- 
toms, weekly,  monthly,  and  'quarterly,  have  been  permitted  to  fall  into 
disuse  in  the  Department  of  the  Secretary  of  the  Treasury,  and  thereby 
render  nugatory  m;uiy  of  the  essential  checks  upon  the  defalcations  ot" 
that  class  of  officers,  arising  iVom  existing  laws  and  Treasury  regulations. 

2d.  The  negligence  and  failure  of  the  Secretary  of  the  ''J'reasury  to  dis- 
charge his  duty  as  the  head  of  the  Treasury  Department,  charged  by  law 
with  the  superintendence  of  the  collection  of  the  revenue,  and  his  want 
of  a  correct  appreciation  of  the  before-named  records  in  the  superintend- 
ence of  the  collection  of  the  public  revenues,  and  the  consequent  neglect 
to  continue  and  complete  them,  are  justly  regarded  as  a  primary  cause 
of  the  escape  from  detection,  for  so  long  a  period,  of  the  immense  defal- 
cations of  the  late  collector  at  the  port  of  New  York. 

3d.  TiK»t  the  Secretary  of  the  Treasury  has  been  wanting  in  a  proper 
discharge  of  his  duty  in  otlice,  in  permitting  Samuel  Swartwout,  late  col- 
lector of  Now  York,  quietly  to  retain  the  sum  of  ^^201, 000,  after  being  out 
of  office,  under  pretext  of  indemnifyiuG:  himself  ogainst  claims  of  importers 
for  duties  paid  him  under  ]^rotest,  and  lial)le  by  him  to  be  refunded,  while 
it  was  known  to  the  Secretary,  within  a  few  weeks  thereafter,  that  said 
Swartwou:  was  neglecting  to.refund  such  protest  money,  as  he  claimed  to 
do,  and  that  the  same  was  being  refunded,  from  necessity,  out  of  odier 
'accruing  resources  of  the  Government,  by  said  Swartwout's  successor  in 
office. 

4th.  T\vd  the  Secretary  of  the  'I'rcasury  has  been  wanting  in  a  proper 
discharge  of  liis  duty  in  office  in  permitting  the  present  collector  at  New 
York  to  retain,  under  his  own  control,  and  subject  to  his  own  use,  com- 
mingled with  said  collector's  private  funds,  large  and  accumulating  sums 
of  the  public  money,  collected  for  duties  paid  under  protest,  and  against 


Rep.  Xo.  313.  99 

the  dechired  opinion  of  said  Secretary,  and  the  declared  opinion  of  the 
Attorney  General  of  the  United  States  on  the  subject ;  also,  against  all 
former  usages  of  the  Department,  and  instead  of  causing  the  same  to  be 
paid  into  the  Treasury  of  the  United  States. 


FART  If. 

THE  DEFALCATIONS  OF  WILLIAM  M.  PRICE. 

The  extent  of  the  defalcations  of  Mr.  Price,  as  district  attorney,  is 
found  in  the  testimony  of  B.  F.  Butler,  Esq.,  his  successor  in  office,  to  be 
2^72,12  4  06;  subject,  liowever,  in  all  probability,  to  some  offsets  for  legal 
services  not  yet  rendered  in  the  charges  of  Mr.  Price. 

The  subjoined  extract  from  the  testimony  of  jVfr.  Butler  presents  the 
results  of  his  own  examination  into  the  subject.  The  committee  is  unable 
to  com[)rehend,  however,  the  practicability  of  any  concealment  by  any 
district  attorney,  respecting  suits  commenced,  or  suits  discontinued  by  pay- 
ment or  otherwise,  from  the  knowledge  of  the  Solicitor  of  the  Treasury, 
for  any  period  much  exceeding  t)ie  vacation  between  terms  of  the  district 
and  circuit  courts  in  any  State,  provided  clerks  of  courts,  marshals,  and 
':ollectors,  are  properly  held  up  to»a  discharge  of  their  respective  duties 
by  the  Solicitor,  and  provided  due  diligence  is  used  in  the  Solicitor's 
othce  in  comparing  the  periodical  and  frequent  returns  to  him  required 
by  law  of  these  several  officers  It  is  unnecessary  to  recapitulate  here 
tlie  requirements  of  the  law  in  these  particulars,  and  the  duties  of  the 
Solicitor  arising  thereiT<im,  as  they  will  lie  understood  in  the  seqnel. 

It  does  not  appear  tliat  the  returns  actually  made  by  Mr.  Price  were  untrue, 
but  all  the  returns  required  by  law  to  be  made  were  not  made ;  and  this 
fact  must  have  been  detected  in  each  case  at  the  Solicitor's  oifice,  if  the 
comparison  expressly  required  by  law,  of  returns  made  there,  liad  been 
)nade  with  proper  care.  For  instance  :  the  case  of  the  United  States  vs. 
Bancker,  particularized  by  Mr.  Butler,  must  have  been  originally,  and  for 
many  terms,  certified  by  the  clerk  of  the  court  to  the  Solicitor  as  a  suit 
pending.  WJien  it  ceased  to  be  pending,  it  ceased  to  be  certified,  of  course  ; 
and  then  due  diligence  on  the  part  of  the  Solicitor  could  have  detected  the 
fact,  and  held  the  attorney  immediately  accountable. 

The  discharge  of  Treadwell  in  1835,  on  which  Mr.  Price  received 
55,000,  was  made  on  terms  prescribed  by  the  Treasury  Department;  and 
it  is  presumed  that  it  must,  of  course,  have  b<:en  conducted  through  the 
Solicitor's  otlice,  as  such  is  the  requirement  of  law.  Is  it  possible  due 
diligence  on  the  part  of  the  Solicitor  would  have  lost  sight  of  an  order 
upon  which  it  had  specially  directed  the  receipt  of  so  large  a  sum,  even 
though  the  attorney  had  neglected  to  report  upon  it? 

The  same  remarks  are  equally  njiplicable  to  each  of  the  other  cases, 
wherein  Mr.  Price  is  a  defaulter,  and  wherein  he  omitted  to  make  report 
to  the  Solicitor. 

It  will  be  observed  that  Mr.  Butler  says,  it  appears  that  in  January 
and  February,  1837,  Mr.  Price  received  ^9,G46  07,  and  in  May,  1S37, 
S6",0ol   11,  on  custom-house  bonds,  no  part  of  which  has  ever  been  paid. 


100  Rep.  No.  313. 

The  Solicitor  of  the  Treasury,  in  his  testimony,  says;  '-The  clerk  of 
the  district  court, during  the  year  1837,  reported  two  hundred  and  forty- 
one  bonds  put  in  suit  by  tlie  district  attorney.  On  a  comparison  of  these 
reports  with  the  returns  of  the  district  attorney  of  bonds  put  in  suit,  so 
as  to  ascertain  the  legal  proceedings,  it  appeared  that  judgment  had  been 
entered  on  all  but  fifty-two  bonds:  of  these,  forty-four  came  within  the 
provisions  of  the  second  section  of  tlie  act  of  lOth  March,  1836,  for  the 
relief  of  the  sufferers  by  fire,  and  the  suits  thereon  were  accordingly  dis- 
continued; of  the  remaining  eight,  seven  bonds  are  reported  as  put  in 
suit  on  the  25lh  January,  1837,  and  one  on  the  Sth  April,  1837.  On  these 
eight  bonds,  the  clerk  does  not  report  that  judgments  were  recovered  by 
the  district  attorney,  who,  therefore,  remains  charged  with  them." 

Now,  if  the  money  received  by  Mr.  Price  in  January,  February,  and 
May,  of  1837,  was  received  on  any  of  these  last-named  eight  suits,  (as, 
probably,  it  must  have  been,  inasmuch  as  the  Solicitor  says,  in  his  testi- 
mony, all  the  bonds  reported  by  the  collector  as  transferred  to  the  district 
attorney  liad  been  reported  on  and  accounted  for  by  the  latter,)  it  is  difli- 
cult  to  attribute  the  escape  of  Mr.  Price's  defalcations  for  these  sums  to 
any  thing  but  negligence  on  the  part  of  the  Solicitor  of  the  Treasury. 
The  suits  having  been  once  reported  as  pending,  certified  by  the  clerk  of 
the  court,  must  have  been  reported  as  pending,  certified  in  like  manner, 
at  each  successive  term  of  the  court;  or  omitted  altogether,  because  settled, 
or  otherwise,  in  the  attorney's  report.  The  law  requires  each  report  to 
include  suits  pending  as  well  as  suit^  concluded.  If  they  were  reported 
as  concluded,  vigilance  by  the  Solicitor  would  have  detected  the  fact,  and 
held  the  attorney  responsible  for  them  at  the  return-day  of  the  execution; 
if  not  reported  as  pending  or  concluded,  vigilance  would  equally  soon 
have  detected  the  fact,  and  sought  an  explanation.  His  tlefalcation  on 
these  eight  suits,  and  the  want  of  information  concerning  them  at  the  So- 
licitor's office,  are  attributable,  therefore,  to  a  negligent  administration  of 
the  duties  of  that  office,  in  the  opinion  of  the  committee,  and  find  no 
apology  in  any  defect  of  existing  laws. 

Extract  from  the  testimony  of  B.  F.  Butler,  Esq. 

Having  had  no  knowledge  or  information  of  Mr.  Price's  conduct  as  a 
receiver  of  public  moneys,  until  since  his  departure  from  tl^e  city  in  De- 
cember last,  I  am  not  able  to  state  the  causes  which  led  to  his  defalcation, 
nor  have  I  formed  any  decided  opinion  on  that  subject;  but  I  have  become 
acquainted,  since  I  have  heen  in  oflice,  with  some  circumstances  which 
appear  to  have  enabled  him  to  receive  and  retain  public  moneys,  without 
being  liable  to  be  called  to  a  prompt  settlement  therefor,  and  which  1  re- 
gard as  among  the  causes  that  led  to  his  defalcation.  First,  and  princi- 
paUij,  by  the  circular  of  the  Solicitor  of  the  'J'reasury,  dated  July  27,  1830, 
district  attorneys  are  instructed,  whenever  any  obligor  of  a  custom-house 
bond  shall  desire  to  discharge  part,  or  the  whole,  of  his  debt  previous  to 
judgment,  to  request  him  to  pay  the  money  to  the  collector  who  delivered 
the  bond  for  suit,  taking  from  him  and  handing  over  to  the  district  attor- 
ney propi-r  receipts  therefor ;  but  if,  instead  of  paying  tlie  money  to  the 
collector,  as  requested,  the  obligor  makes  a  tender  of  the  whole  amount 
due  the  Government  to  the  district  attorney,  he  is  to  receive  the  same, 
and  forthwith  to  deposite  it  in  bank  to  the  credit  of  the  collector  who  de- 


He]).  No.  313.  101 

livured  the  bond  lor  suit ;  or,  if  there  be  no  bank  near  in  which  Govern- 
ment deposites  are  made,  to  pay  the  amount  to  such  collector.  Pursuant 
to  these  instructions,  I  understand  tFiat  Mr.  Hamilton,  the  predecessor  in 
office  of  Mr.  Price,  always  roterred  jiersoiis  applying  to  pay  bonds  re- 
ceived Ironi  the  collector  ot"  this  port,  to  the  collector's  office  ;  and  that 
Mr.  Price  generally  pursued  the  same  course  until  some  time  in  the  year 
1S37.  It  appears  from  his  registers,  that,  in  the  Avinter  of  1830-'37,  he 
received  payment,  in  several  instances,  on  bonds  in  suit  or  in  judgment; 
and  that,  in  the  spring  or  summer  of  1837,  the  practice  of  receiving  pay- 
ment at  his  office  on  custom-house  bonds  delivered  to  him  for  collection 
became  a  settled  one.  In  this  way  ])ublic  moneys,  to  a  large  amount, 
were  brougiit  into  his  hands,  and  he  was  exposed  to  temptations,  and  tliey 
to  liazards,  which  would  not  have  existed  had  the  former  usage  been 
kept  up,  especially  as  neither  the  collector  nor  tjie  officers  of  the  Treasury 
Department  could  generally  know,  except  from  Mr.  Price's  own  reports, 
what  payments  were  made  to  Ivim  on  this  account.  More  than  two-thirds 
of  the  sum  for  wiiich  he  is  in  default  consists  of  moneys  received  in  this 
way.  This  practice  also  enabled  him  to  retain  moneys  in  his  hands  for 
a  considerable  hum  before  paying  them  over.  Several  oi^  the  payments 
made  by  him  to  the  collector  during  the  year  183S,  were  after  a  delay  of 
one  or  two  mouths,  and  I  have  found  one  case  in  which  he  held  JS3,S49  57 
for  ten  months. 

Second/'^.  In  suits  on  Treasury  transcripts,  and  in  litigated  cases  gen- 
erally, and  in  proceedings  of  a  special  nature,  the  Treasury  oliicers  have 
no  means  of  knowing  officially,  excejjt  from  the  report  of  the  district  at- 
torney, wliat  moneys  are  received  by  him.  'i'his  enables  an  nnfaithfnl 
or  careless  officer  to  retain  moneys  in  his  hands,  and  exposes  them  to  loss. 
Mr.  Price's  defalcation  commenced  with  cases  of  this  nature. 

The  first  instance  of  official  delinquency  which  I  have  discovered,  was 
in  not  paying  over  to  the  collector  of  Boston  any  part  of  the  sum  of 
S2,500  received  by  Mr.  Price  on  the  17th  June,  1S35,  from  Evert  A. 
f^ancker,  assignee  of  Scoville  &  Birbeck,  against  whom  a  chancery  suit 
had  been  brought  for  the  ])urpose  of  recovering  a  balance  due  to  the 
United  States  on  a  custom-house  bond  executed  by  Scoville  and  others. 
This  chancery  suit  had  been  pending  for  several  years,  and  the  officers  at 
Boston  had  no  knowledge  of  the  progress  made  in  it,  except  from  the  com- 
munications of  the  district  attorney.  It  was  only  during  the  last  week 
that  I  ascertained  from  Mr.  Banckcr  the  fact  of  the  above  payment,  no 
entry  of  it  being  found  in  the  register  of  Mr.  Price;  and  1  have  reason 
to  believe  that  it  was  never  made  known  to  the  collector  of  Boston.  On 
the  7th  September,  1835,  Mr.  Price  received  from  Ephraim  Tread  well, 
of  this  city,  on  his  discharge  as  an  insolvent  debtor,  pursuant  to  an  order 
of  the  Secretary  of  the  Treasury,  the  sum  of  ■;55,000.  This  money  was 
not  paid  over,  nor  was  the  fact  of  its  payment,  nor  of  the  discharge  of 
Trcadwell,  communicated  to  the  Treasury  Department.  In  October  ot 
the  same  year,  Mr.  Price  ap|>ears,  from  his  register,  to  have  received 
about  SljOGG  in  two  chancery  suits  then  ])ending,  in  which  the  United 
States  were  interested,  and  which  sum  has  never  been  paid  over.  His 
defalcation,  prior  to  December,  1S3G,  according  to  the  information  in  my 
possession,  was  confined  almost  exclusively  to  the  sums  above  mentioned. 
In  December,  1836,  he  appears  to  have  received  ^1,:32.S  97;  in  January 


102  Rep.  No.  313. 

and  February,  1837,  §9,646  07;  and  in  May,  1S37,  S6,0")l  11,  on  ciis- 
tonri-house  bonds,  no  part  of  which  has  ever  been  paid  over.  This  in- 
creased his  defalcation  to  about  S.25,000,  at  which  it  appears  to  have  re- 
mained until  afier  the  1st  April,  183S;  between  wliich  time  and  the  Stli 
day  of  .D(?ct,'mber,  1S3S,  it  was  extended  to  about  the  sum  of  S72,124  36, 
above  mentioned. 

I  am  not  able  to  state  whether  or  not  Mr.  Price  mad(»  ail  the  returns 
to  the  Treasury  Department  at  Washington  required  by  .his  duty  and  the 
instructions  of  the  Solicitor ;  but  I  have  reason  to  believe  that,  when  suits 
were  commenced  on  bonds,  they  were  generally  reported,  and  that  the 
returtis  of  custom-house  bonds  in  suit  were  regularly  made  to  the  SoU- 
citor  up  to  the  end  of  the  last  September  term  of  the  district  court. 

But  there  is  a  cause  auxiliary  to  tliat  of  inelficiency  or  negligence  in 
the  administration  of  the  department  of  the  Solicitor  of  the  Treasury,  to 
which  are  ascribable  the  incipient  impulses  of  Mr.  Price's  defalcation.  It 
is  to  be  found  in  the  pecuniary  irresponsibility  and  want  of  trustworthi- 
ness, as  a  professional  man,  at  the  time  of  his  appointment  to  the  office 
of  district  attorney  in  1834,  by  President  Jackson,  as  also  at  the  time  of 
his  rtiapyiointment  in  1S3S,  by  President  Van  Buren.  These  character- 
istics of  Mr.  Price  appear  to  have  been  notorious  at  each  period  of  his 
appointment  in  tlie  community  from  which  he  was  selected.  The  sub- 
joined proof  establishes  the  fact. 

Jllexandtr  Hamilton,  a  witness  called  by  Mr.  Owens. 
Examined  by  Mr.  Curtis. 

Question  4.  Did  you  know  William  M.  Price,  late  district  attorney  of 
the  United  States,  and  his  general  reputation  for  pecuniary  responsibility? 
What  has  b^en  that  reputation  for  fifteen  years  past  ? 

Answer.  \  have  known  him  for  tlie  period  mentioned,  and  during 
the  time  have  understood  him  to  be  entirely  without  pecuniary  respon- 
sibility. 

.    Jlrent  S.  De  Pcyster,  formerly  weigher  in  the  custom-house,  called  by 
Mr.  fVise. 

Examined  by  Mr.  Harlan. 

Question  10.  Are  you  acquainted  with  William  M.  Price,  late  district 
attornev  of  the  United  States?  If  yea,  please  state  whether  he  was  re- 
garded, before  and  after  his  appointment,  as  a  man  worth)-  to  be  intrusted 
with  collection  of  large  sums  of  money. 

Answer.  I  am  ac([uainted  with  William  M.  Price,  late  district  attorney, 
and  answer  the  (pu  stion  in  the  negative. 

Russell  H.  Nevins,  called  and  examined  l;)y  Mr.  Owens. 

Question  5.  What  was  the  reputation  oi'  Wni.  M.  Price  for  pecuniary 
responsibility  at  the  time  of  his  late  appointment  as  district  attorney  of 
the  United  States  ? 

Aiiszuer.  It  was.  in  my  ostimaiion,  ;u)d  according  to  the  best  of  my 
knowledge,  the  general  opinion  that  he  was  utterly  unworthy  oi"  any 
pecuniary  credit.     I  have  known  Mr.  Price  upwards  of  thirty  years. 


Rep.  No.  313.  103 

Question  G.  How  long  has  Mr.  Price  been  thus  regarded  in  this  com- 
munity ? 

^inswer.  My  opinion  of  him  has  heen  the  same  for  the  last  twenty 
years.  With  the  pubUc.  lie  may  have  gained  something  in  the  course  of 
the  last  few  years,  prior  to  his  late  departure. 

Question  7.  Do  you  say  that  Price's  reputation  had  improved  any  be- 
fore his  appointment  as  district  attorney  of  the  Ignited  States.^ 

^f'inswer.  Not  to  my  knowledge. 

Gorharn  A.  Worthy  cashier  of  the  Cily  Bank  of  New  York. 
Kxamined  by  Mr.  Curtis. 

Quc'iiio)i  4.  Were  you  acquainted  with  William  M.  Price,  laie  district 
attorney  of  the  United  States  ?  If  yea,  what  was  his  i(e7ie7-a/  repxilation 
tor  pecuniary  responsibility  prior  to,  and  at  the  time  of,  his  late  appoint- 
ment as  district  attorney  ?  Was  Mr.  Price  regarded  in  this  community 
as  trustworthy  in  pecuniary  matters  ? 

Answer.  I  was  acquainted  with  Mr.  Wm.  JN'I.  Price.  My  impression 
is,  that  Mr.  Price's  responsibility,  in  a  pecuhiary  point  of  view,  was  very 
liffhf.  Prior  to  his  appointment  as  district  attorney,  his  name  would  have 
had  no  tceight  in  bank. 

Qnestio7i  5.  Was  Mr.  Price's  reputation  such  that  you  would  have 
felt  justified  in  intrusting  him  with  the  collection  and  receipt  of  money 
for  the  City  Bank,  prior  to  and  at  the  time  of  his  late  appointment  as  dis- 
trict attorney  of  the  United  States  ? 

Answer.  I  was  not,  at  the  time  alluded  to,  sn£icieiitly  acqu'iinted  with 
Mr.  Price  to  have  done  so  without  first  making  ihe  necessary  inquiries. 

Question  G.  Was  it  not  notorious  in  tlie  community  at  the  time  of  Mr. 
I'rice's  appointment  as  district  attorney  of  the  United  States,  and  before 
that  time,  that  he  was  regardless  o{ pecu7iiary  obligatiotis  ? 

Ansxuer.  I  have  no  distinct  knotvlediie  that  will  authorize  me  to  answer 
that  question.  How  Mr.  Price  may  have,stood  in  pecuniary  matters  with 
others  I  know  not. 

Question  7.  You  are  asked  concerning  the  cojnmon  report,  the  s^ene- 
ral  reputation,  in  respect  to  Mr.  Price,  and  not  concerning  your  own 
knowledge  of  hinr.  Would  you,  (if  it  had  been  witliin  the  .scope  of  yonr 
duties  as  cashier  of  the  City  Bank,)  relying  upon  the  general  reputation 
of  Mr.  Price,  at  the  time  above  alluded  to,  have  intrusted  hiin  with  the 
collection  and  receipt  of  any  considerable  sum  of  money  for  your  bank  ? 

Ansiver.  No, 

James  B.  Murray,  late  president  of  the  Morris  Canal  Company,  call- 
ed by  Mr.  Owens. 

jS.vamined  by  Mr.  Curtis. 

Quesfinn  5.  Were  you  acquainted  with  William  M.  Price,  '-ite  di-'-trict 
attorney  of  the  United  States  ?  If  yea,  how  long  ?  Was  Mr.  Priee  t;rior 
to,  and  at  the  time  of,  his  late  appointment  to  said  oflicc,  regarded  in  this 
community  as  worthy  of  confidence  in  pecuniary  matters? 

Answer.  I  br.ve  been  acquainted  with  Mr.  Price  for  thirty  years,  and 


104  Rep.  No.  313. 

have  never  known  him  to  be  considered  as  of  much  pecuniary  responsi- 
bility prior  to  his  being  appointed  district  attorney. 

Questifm  6.  Would  you,  as  a  merchant,  have  regarded  it  as  safe  and 
prudent  to  place  demands  in  his  hands  lor  collection,  wlien,  in  the  course 
of  business,  the  uionoy  to  any  considerable  amount  would  have  passed 
into  his  hands  ? 

^insiccr.  I  should  never  liave  employed  Mr.  Price  to  have  collected 
any  demand  for  me  involving  the  necessity  of  a  large  sutn  of  money  pass- 
ing through  his  hands. 

George  Gi^iswold,  merchant,  called  by  Mr.  Owens. 

Examined  by  Mr.  (h/rtu. 

QacsUon  2.  Were  you  acquainted  with  William  ?kl.  Price,  late  district 
attorney  of  the  United  States  ?  If  yea,  how  long  have  you  known  him, 
and  what  was  his  reputation  in  this  community  for  pecuniary  responsi- 
bility at  tlie  time  of,  and  prior  to,  his  ai)pointment  to  said  ollice? 

K'lnsictr.  I  think  I  iiave  been  acqnainrcd  with  him  for  about  fifteen 
years  ;  i  should  think  he  had  as  little  reputation  for  pecuniary  responsi- 
bility as  any  man  you  could  lind.  I  shoidd  say  his  reputation  was  de- 
cidedly bad:  I  never  saw  the  day-when  I  would  trust  hira  with  two  hun- 
dred dollars. 

Quest  ion  '3.  Was  Mr.  Price's  reputation  such,  at  the  time  of  his  late 
appointment,  in  this  community,  that  you  should  have  regarded  it  safe 
and  prudent  to  intrust  him  with  the  collection  and  receipt  of  any  coi'sid- 
erable  sum  of  money  ? 

Jhisw.er.  Certainly  not. 

Jonathan  Goodhue^  merchant,  called  by  Mr.  (Jwena. 
Examijied  by  Mr.  Curtis. 

Question  3.  W^ere  you  acquainted  with  William  M.  Price,  late  district 
attorney  of  New  York?  If  yea,  what  was  his  re.putatio7i  for  pecuniary 
responsibility  at  the  time  and  prior  to  his  appointment  to  said  ollice.^  You 
are  not  asked  for  your  own  knoiule.dgc,  but  o("  the  s^eneral  report  in  this 
conniiunity,  concerning  Mr,  Price's  pecuniary  responsibility. 

^dnswcr.  I  have  known  Mr.  Price  for  many  years,  but  not  in  the  way 
of  meeting  him  frequently.  From  what  I  understood  of  his  business  in 
his  profession,  and  of  his  inheritance  from  his  father's  estate,  and,  on  the 
other  hand,  of  his  habits  of  expenditure,  I  did  not  suppose  his  pecuniary 
responsibility  was  of  much  account,  if,  indeed,  of  any. 

Question  1.  From  what  you  knew  ol"  Mr.  ]*rice,and  his  general  cliarac- 
ter  in  the  community,  would  you  have  considered  it  prudent,  at  any  time, 
to  intrust  Ijirn  with  the  collection  of  notes  or  bonds,  to  any  considerable 
amount,  if  the  money  was  to  pass  into  his  own  hands? 

*^fUiwer.   I  sliould  iiot  have  considered  it  prudent  to  do  so. 


Rep.  No.  313.  105 

John  Ward,  broker,  called  by  Mr.  Owens. 

Examined  by  Mr.  Curtis. 

Question  8.  Were  you  acquainted  with  William  M.  Price,  late  district 
attorney  of  the  United  Stales?  If  yea,  how  long  have  yon  known  him  ? 
What  was  his  reputation  for  pecuniary  responsibility  at  the  time  of  and 
prior  to  his  appointment  to  said  office  ? 

t/^nswcr.  A  sHght  acquaintance  for  a  year  or  two  past.  He  was  gen- 
erally considered  without  pecuniary  responsibiHty. 

Question  9.  Have  you,  or  not,  known  his  general  reputation  for  a 
longer  period,  and  for  many  years  past  ? 

^Inswer.  I  consider  his  general  reputation  has  been  exceptionable  for 
many  years,  and  I  have  known  it  for  many  years. 

Question  10.  Would  you,  as  a  broker  and  man  of  business,  have  re- 
garded it  safe  and  prudent  to  have  intrusted  jMr.  Price  with  the  collection 
and  receipt  of  any  considerable  sum  of  money  ? 

Jinswer.  I  should  not. 

David  Clarkson,  president  of  the  Brooklyn  (late  deposite)  Bank. 
Examined  by  Mr.  Curtis. 

Question  1.  Were  you  acquainted  with  William  M.  Price,  late  district 
attorney  of  the  United  States?  and  how  long  have  you  known  him? 

tdnswer.  For  many  years. 

Question  2.  For  the  last  ten  years,  or  prior  to  and  at  the  time  of  his 
taking  said  o dice,  v/ hat  was  his  reputation  in  tiiis  community  for  fidelity 
and  responsibility  in  pecuniary  transactions?  Would  you  have  deemed  it 
safe  and  prudent  to  intrust  him  with  your  business,  if  your  money  were 
consequently  to  pass  into  his  hands? 

Answer.  Since  I  have  Icnown  him  I  have  been,  mysf^lf,  unfavorably 
impressed  as  to  his  standing  ;  and  his  pecuniary  responsihihty  sucli  that  1 
should  have  considered  my  property  insecure  in  his  hands. 

While  it  is  not  deemed  by  the  committee  within  the  scope  of  its  legit- 
imate province  to  investigate  the  causes  "which  have  disturbed  the 
rightful  course  of  appointment,  and  have  placed  or  continued  |)ower  in 
unfaithful  or  incompetent  hands,''  the  conviction  is  irresistible,  that,  in  the 
case  of  Mr.  Price,  as  well  as  in  that  of  Mr.  Swartwout,  they  have  re- 
sulted in  immense  losses  of  the  public  money,  alike  disreputable  to  the 
Government  and  demoralizing  to  the  country.  And,  from  the  testimony 
in  the  case,  the  committee  find  the  following  facts  cstablislicd  : 

1st.  That  William  M.  Price,  as  district  attorney,  is  a  defaulter  to  the 
Government  in  a  larse  amount. 

2d.  That  his  defalcations  are  attributable  to  the  notorious  irresponsi- 
bility and  want  of  character  of  said  Price  at  the  periods  of  his  ap{)i»int- 
ment  and  reappointment,  and  during  his  entire  terms  of  ofhce  ;  and  to 
the  continued  neglect  of  the  proper  and  efficient  discharge  of  duties  at 
the  office  of  the  Solicitor  of  the  Treasury,  by  the  late  and  present  in- 
cumbents of  that  office. 
8 


106  Rep.  No.  313. 


PART  III. 

THE  CORRFXTNESS  OF  THE  RETl'RNS  WHICH  HAVE  BEEN 
MADE  BY  THE  PRESENT  COLLECTOR  AND  NAVAL  OF- 
FICER OF  THE  PORT  OF  NEW  YORK,  RESPECTIVELY. 

So  far  as  this  inquiry  related  to  tlie  returns  of  the  naval  officer,  no  im- 
pediment was  started  or  encoiuitered  from  any  source.  And,  considering 
that  nearly  two-thirds  of  the  whole  revenne  of  the  Government  passes' 
into  the  hands  of  the  collector  of  this  port ;  and  considering  the  natural, 
and  by  no  means  unworthy,  distrust  that  has  of  late  pervaded,  and  still 
pervades,  the  public  mind  in  relation  to  the  safety  and  proper  disposition 
of  so  large  a  portion  of  the  Government  funds  as  are  managed,  while  in 
transitu  to  the  Treasury,  by  him  ;  and  considering,  more  especially,  how 
free  and  well  prepared,  as  a  general  rule,  every  officer  intrusted  with  the 
delicate  task  of  conducting  the  money  concerns  of  the  people  should  be 
to  lay  bare  to  the  public  gaze,  at  any  time  wlien  called  upon  for  the  pur- 
pose by  even  the  semblance  of  competent  authority,  if  all  is  as  it  should 
be  in  the  department  of  such  officer  ;  the  committee  regret  extremely  that 
they  were  not  equally  successful  hi  pursuing  their  inquiry  into  the  cor- 
rectness of  the  returns  which  have  been  made  by  this  collector,  as  into 
those  of  the  naval  officer.  But  they  feel  constrained  to  say,  that,  on  the 
part  of  the  collector,  there  was  a  sensitiveness  manifested  upon  the  sub- 
ject of  their  inquiry  wholly  incompatible  with  the  high  bearing  that  or- 
dinarily characterizes  pure  dictates  and  conscious  integrity,  and  wholly  at 
variance  with  the  obligations  of  duty  imposed  upon  him  by  his  station. 
The  hope  is  indulged,  however,  that,  in  this  case,  it  may  have  proceeded 
only  from  the  petulancy  and  vanity  sometimes  incident  to  the  possession 
of  "brief  authority;*'  although  it  would  be  claiming  too  liberal  an  exer- 
cise of  charitable  feeling  to  require  the  committee  to  yield,  without  quali- 
fication, to  sucVi  a  conviction.  The  inquiry  reached  far  enough  to  enable 
them  to  pronouce  definitively  that  the  returns  of  the  collector,  in  relation 
to  the  public  money  received  by  him,  if  true  in  their  details,  ha\e  not 
been  made  in  details  according  to  the  requirements  which  should  be  en- 
joined upon  him  by  the  Secretary  of  the  Treasury,  in  whom  is  vested,  by 
existing  laws,  the  absolute  superintendence  of  the  collection  of  the  public 
revenue,  nor  have  they  been  what  the  safety  of  the  Treasury  demands. 

But,  being  desirous  of  presenting  the  case  of  this  collector  to  the  Mouse 
and  country  in  the  precise  light  in  which  they  reached  and  viewed  it,  the 
committee  will  adhere  closely  to  the  order  and  to  the  facts  in  which  it 
stands  Uj)on  their  journal. 

Tlie  committee  being  in  session  at  New  York,  apprized  Mr.  Hoyt,  the 
collector,  of  the  fact ;  and  furnished  him  a  copy  of  the  resolution  of  the 
House  under  which  the  committee  were  proceeding. 

On  the  26th  of  .lanuary  the  following  resolution  was  passed  in  com- 
mittee without  a  division,  and  communicated  by  the  chairman  to  the  col- 
lector, to  wit : 

On  motion  of  Mr.  Dawson, 
Resolved,  That  the  collector  of  the  customs  for  the  district  of  New 


Rep.  No.  313.  lOT 

York  be  required  to  place  before  this  committee  the  book  containing  a 
copy  of  all  letters  to  and  from  the  Treasury  Department  of  the  United 
States  since  the  1st  tjf  Januany,  1S37;  also  his  book  eoutaiiiiiig  the  rec- 
ord of  all  orders  and  instructions  from  that  Department  since  the  1st  of 
January,  1837. 

To  which  resolution  the  following  answer  was  received  from  the  col- 
lector : 

CUSTOM-UOUSE, 

Collector's  Office,  Netv  York,  Jan.  26,  1839. 
Sir  :  I  have  this  moment  received  your  communication  of  this  day, 
covering  a  resolution  in  the  following  words  : 
"  On  motion  of  Mr.  Dawsoii, 
*'  Resolved,  That  the  collector  of  the  customs  for  the  district  of  New 
York  be  required  to  place  before  this  committee  the  book  containing  a 
copy  of  all  letters  to  and  from  the  Treasury  Department  of  the  UnUed 
States  since  the  1st  of  January,  1837  ;  also  his  book  containing  the  rec- 
ord of  all  orders  and  instructions  from  that  Department  since  the   1st  of 
January,  1837." 

I  now  send  you  tv/o  letter-books,  which  I  am.  informed  by  the  only 
clerk  now  in  this  office  during  the  time  of  Mr.  Swattwoiit,  (hat  had  any 
especial  charge  of  the  correspondence;  which  two  books  contain  "the 
letters  to  and  from  the  Treasury  Department  of  the  United  States  since 
the  1st  of  January,  1837,"  up  to  the  time  Mr.  Siuartwout  went  out  of 
office. 

I  also  send  you  a  book  of  circulars,  which  the  same  clerk  informs  me 
is  the  only  one  he  knows  of.     I  am  not  aware  of  any  others. 

If  I  have  not  interpreted  the  resolution  correctly,  you  will  be  pleased 
to  inform  me. 

Very  respectfully,  your  obedient  servant, 

J.  HOYT,  Collector. 
Hon.  James  Harlan, 

Chairman,  <§'C. 

The  foregoing  reply  of  the  collector,  and  its  accompaniments,  bore  upoiis 
its  face  a  designed  restriction  of  the  c;dl  made  upon  him  to  the  letters,  or- 
ders, and  instructions  that  had  passed  between  tlie  Treasury  Dep:iriment 
and  the  late  collector,  Mr.  Swartwout,  and  embraced  none  of  a  sul^sequent 
date,  or  to  which  tlie  present  collector  was  a  party,  althougli  the  only  legit- 
imate construction  of  which  the  call  was  susceptible  embraced  the  latter 
as  well  as  the  former.  Believing  the  documents  withheld  in  this  manner 
to  be  essential  to  the  investigation,  Mr.  Dawson  moved,  on  the  28th  of 
January,  the  following  resolution  in  committee  : 

Resolved,  That  Mr.  Hoyt,  the  collector,  be  required  to  furnish  this  com- 
mittee with  all  letters  to  and  from  the  Treasury  Department  and  the  col- 
lector of  the  customs  at  New  York;  and  also  all  orders  and  instructions 
from  the  Treasury  Department  to  said  collector  since  the  1st  day  of  Jan- 
uary, 1837^  up  to  the  present;  day  ;  and  the  answers  of  said  collector,  if 
any,  to  said  orders  and  instructions,  not  already  furnished  to  this  com- 
mittee. 

JNIr.  Owens  moved  the  following  amendment  : 

'"  Provided  thn  said  letters,  orders,  und  instrnctioiis,  have  reference  to 
the  late  defalcations  embraced  in  the  inquiry  of  this  committee." 


108  Rep.  No.  313. 

On  this  amendment  the  yeas  and  nays  were  ordered,  on  the  moiion  of 
Mr.  Owens,  and  decided  in  the  negative  by  the  following  vole : 

Yeas — Messrs.  Foster,  Owens,  Wagener — 3. 
■'Nays — Messrs.  Cnrtis,  Dawson,  Ilarlan,  Hopkins,  Smith,  Wise — 6. 

The  question  was  then  taken  on  the  original  resolution  ;  and  the  yeas 
and  nays  !  eing  ordered,  on  motion  of  Mr.  Wagener,  the  resolution  was 
adopted  by  the  following  vote: 

Yeas — Messrs.  Curtis,  Dawson,  Ilnrlan,  Hopkins,  Smith,  Wise — 6. 

Nays — Messrs.  Foster,  Owens,  Wagener — 3. 

At  the  evening  session  of  the  same  day,  the  following  letter  from  the 
«ollector  was  received,  and  read  in  committee  : 

CuSTOM-HOUSE, 

Colledor's  Office,  Nciv  York,  Jan.  28,  1839. 

Sir  :  I  received  your  note  at  hwlf-past  1  P.  M.this  day,  covering  a  res- 
olution, in  the  words  and  figures  following,  viz  : 

:'  Resolved,  Tliat  Mr.  Hoyt,the  collector,  be  required  to  furnish  this  com- 
mittee with  all  letters  to  and  from  the  Treasury  Department  and  the  col- 
lector of  the  customs  at  New  York,  and  also  all  orders  and  instructions 
Ifom  the  Treasury  Department  to  said  collector,  since  the  1st  day  of  Jan- 
uary, 1S37,  up  to  the  present  day  ;  and  the  answers,  if  any,  to  said  orders 
and' instructions,  not  already  furnished  to  this  committee. 

"  A  true  copv  from  the  minutes. 

'<P.  R.  FENDALL,  Clerk:' 

In  reply  to  that  resolution,  I  have  to  remark,  that  I  am  a  public  agent, 
responsible  to  the  law,  which  I  recognise  as  my  superior,  to  the  same  ex- 
tent as  the  connnittee  are  ;  and  I  have  no  right  to  exceed  the  authority 
delegated  to  me,  any  more  that  [than]  the  committee  have  to  exceed  that 
delegated  to  it. 

It  is  a  rule  I  l)ave  observed  since  1  have  occupied  the  rcs})onsible  station 
\  now  do,  in  all  Uiatters  connected  with  the  perJbnnance  of  official  duty. 
Id  look  into  the  authority  of  all  persons  aski))g  for  my  official  action,  to 
see  upon  what  authority  that  action  is  demanded  or  requested.  In  pur- 
suance of  this  principle,  with  which  the  committee  must  be  familiar,  I 
have  looked  into  the  "copies  of  certain  proceedings  of  the  House  of  Rep- 
resentatives,'' fmnislied  to  me  on  the  25th  instant,  by  order  of  the  com- 
Hoittee  ;  and  I  there  find,  after  a  recital  of  the  defalcation  of  the  late  collector 
of  New  York,  that  the  committee  are  authorized  to  inquire  "  into  the 
causes  and  extent  of  the  late  defalcations  of  the  custom-house  at  New 
York  and  other  places,  the  length  of  time  they  have  existed,  the  correct- 
ness of  the  returns  which  have  been  made  by  the  collectors,  naval  and 
other  officers,  and  the  depo.vite  banks  respectively,  and  all  such  facts  con- 
Biected  with  the  said  defalcations  as  may  be  deemed  material  to  develop 
their  true  character."  "That  the  said  cominiitee  be  required  to  inquire 
into  and  make  report  of  any  defalcations  among  the  collectors^  receivers, 
and  disbursers  of  the  public  money  which  may  now  exist,  the  length  of 
Sime  they  have  existed,  and  the  causes  which  led  to  them." 

This,  then,  being  the  authority  delegated  to  the  committee,  it  becomes 
necessary  to  inquire,  belbrc  I  send  the  correspondence  of  the  collector's 
office  of  this  port  with  the  Treasury  Department,  since  the   1st  day  of 


Rep.  No.  313.  1Q» 

January,  1837,  "ifo  the  present  dci}/^''  to  inquire  whether  the  committee, 
or  any  of  its  members,  charge  the  uudorsigaed  with  being  a  delauUer. 
Respectfully,  your  obedient  servant, 

J.  IIOYT,  Collector. 
To  the  Hon.  James  Harlan,  Chairman,  S^c. 

On  the  Ibllowing  day,  January  2,0,  Mr.  Wise  mov(>d  in  committee  the 
following  resolutions  : 

Resolved,  That,  in  response  to  the  letter  of  Mr.  Hoyt,  of  the  28th  in- 
stant, the  chairman  be  instructed  to  call  upon  him  again  to  furnish  this 
committee  with  all  letters  not  heretofore  furnished,  from  the  several  offi- 
cers of  the  Treasury  Department  to  the  late  and  present  collector  at  New 
York,  and  from  said  col  lectors  to  said  ollicers  of  the  Treasmy  Depart- 
ment, since  the  1st  day  of  January,  1837,  up  to  the  17th  day  of  January, 
1839;  and,  also,  with  all  orders  and  instructions  from  said  otFicers  to  said 
collectors,  and  the  answers  of  said  collectors  thereto^  if  any,  not  hereto- 
fore furnished,  since  the  1st  day  of  January,  1837,  up  to  the  17th  day  of 
January,  1839. 

jind  be  it  further  resolved,  That  this  committee  cannot  recognise  any 
authority  or  right  whatever,  in  any  collector,  receiver,  or  disburser  of  the 
public  money,  to  call  upon  "  the  committee,"  or  "  any  of  its  members^"' 
to  prefer  or  to  disavow  a  charge  of  his"  being  a  defaulter,'''  before  such  of- 
ficer sends  ^' the  correspondence^-  of  his  ^'- ofjice^''  when  required  under 
the  authority  of  the  House  of  Representatives,  "  to  send  for  persons  and 
papers,''^  to  enable  its  committee  "  to  inquire  into,  and  make  report  of 
any  defalcations  among  collectors,  receivers,  and  disbursers  of  the  public 
money  which  nvdy  .7-iow  exist f^  nor  can  this  conifniltee,  or  ^^  any  of  its 
members,'-  report  whether  Mr.  Hoyt  is,  or  is  not,  7iow,  a  delaulter,  until, 
by  examination  of  the  "  persons  and  papers,"  for  which  it  has  sent  an<i 
will  send,  it  shall  discover  "  who  are  the  defaulters;  the  amount  of  defal- 
cations ;  the  length  of  time  they  have  existed ;  and  the  causes  which  led 
to  them:"  and  when  the  committee  shall  have  found  the  facts  embraced 
by  these  inquiries,  or  closed  its  investigation,  it  will  make  report  thereof 
to  the  Hause  of  Representatives. 

On  motion  of  JNIr.  Hopkins,  the  yeas  and  nays  were  ordered. 

The  resolutions  were  adopted. 

Yeas — Messrs.  Curtis,  Dawson,  Harlan,  Hopkins,  Smith,  Wise — 6. 

Nays — Messrs.  Foster,  Owens,  Wagener — 3, 

On  the  30th  of  January  the  cliairman  laid  belore  tlie  committee  the 
following  letter  from  the  collector  ; 

CUSTOM-IIOUSE, 

Collector's  Office,  Neiu  York,  January  29,  1839. 

Sir  :  Your  letter,  covering  two  resolutions  passed  by  the  select  com- 
mittee this  day,  came  to  me  at  half-past  one,  P.  M. ;  but  the  pressure  of 
current  official  duties  was  such,  that  I  had  not  the  opportunity  to  make 
a  reply  in  time  to  lay  it  before  the  committee  previous  to  its  adjournment 

I  regret  that  the  committee  has  not  thought  proper  to  reply,  explicitly,  to 
the  inquiry  made  in  my  letter  of  yesterdav,  as  to  whether  it  intended  to 
charge  me  with  officialdetalcation.  An  answer  to  that  inquiry  appeared 
to  me  to  be  not  only  a  matter  of  right,  but  also  one  which  it  was  my  duty 


110  Rep.  No.  313. 

to  institute,  inasmuch  as  I  could  not  conceive  what  connexion  that  por- 
tion of  the  documents  called  for  by  the  committee  which  relates  to  my 
own  ollicial  conduct  could  have  with  the  defalcation  of  my  predeces- 
sor; nor  could  I  see  any  cause  for  calling  for  such  documents,  unless  it 
was  the  intention  of  the  committee  to  extend  to  me  the  charge  of  de- 
falcation. But  though  an  explicit  answer  has  not  been  given  to  my  in- 
quiry, I  cannot  but  consider  the  second  resolution  passed  by  the  select 
committee,  and  enclosed  in*  your  letter,  as  intimating,  at  least,  that  the 
■committee  deem  it  necessary  to  inquire  into  "  the  collection  and  disburse- 
ment" of  the  public  moneys  by  me,  as  eollector  of  this  port,  and  into  the 
accounts  appertaining  to  the  same ;  and  that  they  also  deem  it  possible 
that  such  an  inquiry  may  show  me  a  defaulter.  Regarding  the  resolution 
referred  to  in  this  serious  aspect,  I  feel  it  due  to  the  public  service,  as  well 
as  to  my  own  character  and  rights,  to  call  on  the  select  committee,  as  I 
now  do,  to  make  a  full  and  thorough  investigation  into  my  accounts,  be- 
fore leaving  this  city,  to  the  end  that  it  may  make  such  a  report  in  the 
matter  as  shall  either  sustain  this  intimation,  or  remove  all  grounds  for 
the  injurious  suspicions  it  is  calculated  to  excite.  The  justice  of  this  ap- 
peal is  too  obvious  to  need  comment,  and  I  will  not  doubt  the  readiness 
of  the  committee  to  recognise  it;  although  I  cannot  but  question  the  ac- 
curacy of  the  construction  which  the  committee  has  given  to  its  powers, 
under  the  resolutions  of  the  House  of  Representatives,  which  I  can 
scarcely  think  were  intended  to  authorize  the  committee  to  make  a  sweep- 
ing call  for  the  papers  of  a  public  officer,  against  whom  no  charge  of  de- 
falcation is  preferred,  for  the  purpose  of  ascertaining  whether  he  is  not  a 
defaulter.  Yet,  such  is  my  anxiety  to  give  every  facility  to  the  investiga- 
tion of  my  accounts,  and  such  my  unwillingness  to  rest  for  a  moment  un- 
der the  imputation  implied  in  the  resolution  of  the  select  committee,  that 
I  shall  cheerfully  submit  to  it  all  the  official  correspondence  I  have  held 
with  the  Treasury  Department,  and  all  books  and  papers  relating  to  the 
receipt  and  disbursement  of  the  public  money,  and  to  the  particulars  and 
state  of  the  accounts  during  the  period  mentioned  in  the  resolution. 

It  will  also  give  me  pleasure  to  communicate,  either  orally  or  in  wri- 
ting, any  other  information  on  the  subject  which  may  be  in  my  power, 
and  which  the  committee  may  wish  me  to  lay  before  it. 

I  shall,  therefore,  immediately  proceed  1o  select  all  the  letters,  orders, 
and  instructions,  received  from  the  Treasury  Department,  within  the  pe- 
riod referred  to,  relating,  to  the  receipt  and  disbursement  of  the  public 
moneys,  and  the  state  of  the  accounts;  and  will  have  the  honor  to  trans- 
mit the  same  to  the  select  committee  as  soon  and  as  fast  as  schedules 
thereof  can  be  prepared.  As  to  the  official  letters,  on  the  same  subject, 
written  l)y  me  to  the  Department,  the  originals  of  them  arc  in  the  posses- 
sion of  the  several  officers  to  whom  they  were  addressed,  and  I  am  there- 
fore unable  to  send  them,  as  requested  in  the  resolution  ;  but  1  shall  be 
enabled  to  lay  copies  thereof  before  the  conmiiltee,  if  copies  will  be  re- 
ceived, and  are  desired.  Such  copies,  if  called  for,  will  be  furnished  as 
speedily  as  expert  copyists  can  prepare  them. 

I  have  already  communicated  to  the  select  committee  all  the  corre- 
spondence of  my  predecessor  in  office,  on  the  subject  referred  to,  which 
the  committee  has  called  for,  so  far  as  I  know  of  its  existence. 
Very  respectfully,  your  obedient  servant, 

J.  HOYT,  Collector, 

Hon.  James  Harlan,  Chairman,  <5'C. 


Rep.  No.  313.  Ill 

Also,  oa  the  same  day  the  chairman  laid  before  the  committee  the  follow- 
ing letter  from  the  collector  : 

Custom-house, 
Collector'' s  Office,  New  York,  January  30,  1839. 

Sir  :  In  pursuance  of  the  promise  made  in  my  communication  of  yes- 
terday, to  the  select  committee,  concerning  my  correspondence  with  the 
Treasury  Department,  I  now  send  to  the  committee  the  official  letters 
from  the  Secretary  of  the  Treasury  to  the  undersigned,  as  per  schedule 
A,  hereto  annexed. 

I  also  send  the  letters  from  the  Treasurer  of  the  United  States,  as  per 
schedule  B. 

I  also  send  the  letters  from  the  Fifth  Auditor  of  the  Treasury,  as  per 
schedule  C. 

I  also  send  the  letters  from  the  Solicitor  of  the  Treasury,  as  per  sched- 
ule D. 

I  also  send  the  letters  from  the  First  Auditor  of  the  Treasury,  as  per 
schedule  E. 

I  also  send  the  letters  from  the  First  Comptroller  of  the  Treasury,  as 
per  schedule  F. 

I  also  send  a  book,  labelled  "  Circulars  from  the  Comptroller  and  Sec- 
retary of  the  Treasury."  The  clerk  whose  duty  it  was  to  arrange  that 
book,  I  regret  to  say,  has  not  put  the  circulars  in  the  book  in  the  order  in 
which  they  bear  date;  and  there  may  be  some  in  manuscript  not  in  that 
book,  but  in  the  letters  transmitted. 

I  have  made  a  hurried  selection  of  the  letters  I  now  transmit,  from  my 
desire  to  comply  promptly  with  my  undertaking;  and  it  is  therefore  pos- 
sible 1  may  have  omitted  some,  which  I  will  send  hereafter  if  I  discover 
that  any  have  been  omitted. 

To  avoid  the  contingency  of  a  loss  of  any  of  the  letters,  I  would  respect- 
fully request  that  you  would  permit  the  clerk  of  the  select  committee  to 
compare  them,  and  indicate  to  me  whether  the  letters  correspond  with 
the  schedules. 

Very  respectfully,  your  obedient  servant, 

J.  HOYT,  Collector. 

P.  S.  In  the  heading  of  this  communication  I  have  stated  "  schedules 
annexed ;"  I  have  put  the  schedules  on  the  top  of  each  separate  file  of 
letters. 

J.  HOYT. 

Hon.  James  Harlan,  Chairman,  ^'C. 

The  evasive  responses  thus  made  by  the  collector  to  the  calls  of  the 
committee,  partaking  of  a  species  of  special  pleading  quite  out  of  place 
in  the  intercourse  of  public  agents,  however  suited  to  some  other  forum, 
and  studiously  withholding  thereby  all  records  by  which  the  correctui-ss 
of  his  own  proceedings  in  the  returns  he  had  made  while  in  olfice  could 
be  tested  ;  and  especially  the  disposition  of  mind  indicated  in  the  quasi 
apology  put  forth  in  his  letter  of  the  29th  of  January,  for  not  communi- 
cating his  own  official  letters  to  the  officers  of  the  Treasury  Department, 
viz:  that  "  the  originals  of  them  are  in  the  possession  of  the  several 
-officers  to  whom  they  were  addressed,  and  I  am  therefore  unable  to  send 


112  Rep.  'No.  313. 

them  as  requested,  4*c.,  btd  would  send  copies  if  desired"  S,-c.,  precluded 
the  hope  of  obtaining  from  that  quarter  anything  Uke  satisfactory  inform- 
ation respecting  his  returns  and  the  basis  of  them,  without  recourse  Xo 
something  of  more  binding  solemnity  than  respectful  calls  in  the  shape  of 
resolutions, and  probably  not  without  recourse  to  the  testimony  of  others. 
No  more,  consequently,  was  obtained  from  the  collector,  except' by  making 
him  a  witness,  and  examining  him  under  oath,  which,  at  a  subsequent 
and  proper  stage  of  the  investigation,  was  done. 

On  the  5th  of  February,  Mr,  David  S.  Lyon,  formerly  a  deputy  collect- 
or at  New  York,  was  under  examination  as  a  witness,  and  information 
was  sought  of  him  respecting  trie  amount  of  money  which  had  been  re- 
ceived under  protests  by  the  collector.  This  part  of  the  proceeding  is 
extracted  from  the  journal  of  the  committee,  in  the  order  of  its  occur- 
rence, as  follows : 

Question  3.  What  is  the  total  amount  of  money  received  into  the  pos- 
session of  Jesse  Iloyt,  as  collector,  or  individually,  under  protest,  from  the 
commencement  of  his  ofiicial  term  to  tiiis  day? 

Mr.  Owens  objected  to  the  3d  interrogatory. 

Mr.  Foster  called  for  the  yeas  and  nays  on  the  question.  Shall  the  inter- 
rogatory be  propounded? 

The  question  was  then  put,  and  decided  in  the  affirmative. 

Yeas — Messrs.  Curtis,  Dawson,  Harlan,  Hopkins,  Smith,  Wise — 6. 

Nays — Messrs.  Foster,  Owens,  Wagener — 3. 

The  3d  interrogatory  was  then  propounded,  and  the  witness  gave  to  it 
the  following 

Jinswer.  I  do  not  know  what  amount  of  money  Jesse  Hoyt  has  re- 
ceived as  collector,  or  individually,  under  protest;  but  I  do  know  that 
large  amoimts  have  been  paid  him,  and  that  he  has  required  such  money 
to  be  paid  him  as  duties  upon  goods,  wares,  and  merchandise,  which  the 
importers  claimed  to  be  exempt  from  duty.  I  should  suppose  that  lie  has 
received  three  hundred  thousand  dollars.  I  have  personally  paid  him,  as 
agent  of  importers,  about  thirty  thousand  dollars.  He  demands  this  money 
as  collector,  and  withholds  the  goods  as  collector  until  his  demand  is  com- 
plied with.  I  believe  the  moneys  thus  received,  under  protest,  are  not 
entered  in  the  cash  book,  nor  put  in  the  hands  of  the  cashier,  and  that 
they  do  not  enter  into  his  account  of  public  moneys  with  the  Treasury 
Department;  but  that  he  keeps  the  vouchers  in  his  private  possession,  and 
kee]:)S  the  money  in  his  individual  capacity. 

I  have  received  the  individual  checks  of  Mr.  Hoyt  upon  the  City  Bank,, 
in  cases  where  he  has  returned  duties  paid  under  protest,  and  have  re- 
ceived his  official  receipt  for  money  paid  him  under  protest  See  a  copy- 
of  one,  viz : 

"Custom-house,  New  York,  January  22,  1839. 
"Received  of  Mr.  Gay  Lassac  &  Noel,  five  hundred  dollars,  as  a  de- 
posite  to  secure  the  payment  of  the  duty  on  merchandise,  imported  in  the 
ship  Cliarles  Carroll. 

''$500  "J.  HOYT,  Collector.'' 

When  I  paid  said  sum,  I  received  the  receipt  of  the  assistant  cashier, 
Mr.  Bleecker,  in  the  usual  way,  and  delivered  it  to  my  principal,  and  was 


Eep.  No.313.  .         113 

requested  by  Mr.  Bleecker  to  return  it,  and  receive  one  signed  by  Mr. 
Hoyt,  saying  that  if  I  lield  his  receipt,  he  was  responsible  for  money  held 
by  Mr.  Hoyt. 

Mr.  Lyon  having  intimated  that  he  was  in  bad  health,  and  desired  to 
be  detained  no  longer,  for  the  present,  by  the  committee,  Mr.  Wise  moved 
that  he  be  excused  from  the  further  attendance  to-day,  and  that  he,  Mr. 
Wise,  should  iiave  leave  to  propound  the  interrogatories  herewith  pre- 
sented, from  4th  to  20th,  inclusive,  and  that  the  witness  be  permitted  to 
retire  with  the  same,  and  to  return  his  answers  when  completed,  subject 
to  any  objection  wliich  may  be  made  to  the  same. 

The  yeas  and  nays  were  called,  on  motion  of  Mr.  Owens,  and  the  mo- 
tion was  carried. 

Yeas — Messrs.  Curtis,  Dawson,  Harlan,  Hopkins,  Smith,  Wise — 6. 

Nays — Messrs.  Foster,  Owens,  Wagener — 3. 

Mr.  Owens  moved  that  Mr.  Hoyt,  the  collector,  be  furnished  by  the 
clerk  v/ith  copies  of  all  the  interrogatories  and  answers  of  David  S.  LyoUy 
a  witness  examined  in  this  investigation,- as  far  as  he  has  niade  answer  to 
them,  and  having  relation  to  the  conduct  of  said  Jesse  Hoyt. 

This  motion  was  amended  by  the  committee  so  as  to  read  as  follows, 
and  then  adopted  : 

"That  Mr.  Hoyt,  the  collector  of  New  York,  be  forthwith  summoned 
as  a  witness,  and  that,  before  he  be  examined,  the  interrogatories  submit- 
ted to  David  S.  Lyon,  a  witness  examined  this  morning,  and  his  answers 
thereto,  be  read  to  him  if  desired,  or  he  be  allowed  to  read  them,  and  that 
he  have  liberty  to  attend  the  committee  during  the  examination  of  any 
witness  who  may  be  called  upon  to  testify  concerning  his  otticial  conduct.'* 

Mr.  Hoyt  was  accordingly  summoned,  and  forthwith  appeared.  Tiie 
above  interrogatory  and  answer  of  Mr.  Lyon  were  read  to  him  ;  and 
from  this  period,  onward,  Mr.  Hoyt  was  advised  of  all  testimony  taken  in 
committee  affecting  himself,  either  directly  or  indirectly.  He  was,  more- 
over, permitted  to  have  witnesses  summoned  and  interrogated  by  himself, 
all  whom  he  had  desired,  and  up  to  tlie  evening  of  the  7th  of  February. 
And  not  only  was  this  extent  of  liberality  shown  the  collector  by  the  com- 
mittee, of  making  himself  a  vx^itness,  with  full  opportunity  of  explaining 
every  point  alfecting  himself  in  the  testimony  of  any  other  witness,  and  of 
having  called  any  and  every  witness  he  desired  to  call,  with  the  opportunity 
of  examining  them  himself;  and,  also,  of  having  his  interrogatories  pro- 
pounded to  them  through  tlie  members  of  the  conmiittee,  as  well  as  by 
himself;  but  he  was  also  permitted  the  extraordinary  ruse  of  interrogating 
himself,  and  of  answering  to  his  own  interrogatory,  that  no  point  of  inter- 
est to  himself  might  escape  explanation. 

In  the  progress  of  the  examination  on  the  5th  of  February,  of  Mr. 
Hoyt,  relative  to  the  amount  of  money  received  by  him  under  protest,  as 
collector,  and  his  mode  of  keeping  and  making  returns  of  it  to  the  Treas- 
ury Department,  it  was  discovered  that  only  general  information  and  es- 
timated amounts  were  attainable  from  him  ;  but  he  imbodied  in  his  tes- 
timony a  correspondence  which  he  had  entered  into  about  seven  months 
after  his  appointment  to  ollice,  with  the  Bank  of  the  Stale  of  New  York, 
upon  the  subject  of  keeping  and  paying  interest  for  this  class  of  his  col- 
lections, as  his  own  assent,  and  not  as  the  agent  rf  the  Government, 
The  following  reply  of  the  bank  comprises  the  c.  rrespondvmce  of  Mr. 
Hoyt  with  it,  disclosed  at  this  time  ; 


114  Rep.  No.  313. 

Bank  of  the  State  of  New  York, 

October  19,  1838. 

Dear  Sir:  I  have  the  honor  to  acknowledge  the  receipt  of  your  letter 
of  this  date,  addressed  to  the  president  and  directors  of  this  bank. 

You  slate  "  I  have  been  in  the  habit  of  receiving,  at  various  times,  from 
the  importers,  sums  of  money  under  protest,  with  a  notice  not  to  pay  it 
over  to  the  Government,  as  suits  would  be  commenced  to  recover  it  back. 

"  In  such  cases  I  have  not  passed  the  money  to  the  credit  of  the  United 
States,  but  have  held  it  as  a  trustee,  for  the  use  of  such  parties  as  should 
be  adjudged  by  the  court  to  be  entitled  to  it, 

"  In  case  of  suit  brought,  and  recovery  had,  interest  would  also  be  re- 
covered from  me  at  the  rate  of  seven  per  cent,  per  aninim, 

"  Under  these  circumstances,  it  is  but  proper  that  I  should  so  dispose  of 
the  money  as  to  derive  the  same  interest  from  it  that  I  should  be  compel- 
led to  pay,  provided  it  could  be  done  with  safety. 

"  The  account  I  keep  at  your  bank  is  a  large  one,  and  the  money  I  re- 
ceive under  protest  forms  a  part  of  my  daily  deposite  with  your  institu- 
tion. 

"  I  shall  hereafter  make  a  weekly  report,  on  Monday  of  each  week,  to 
the  Treasury  Department,  of  the  amoiuit  I  so  hold  under  protest.  If  I 
furnish  you  with  a  copy  of  that  report,  will  you  allow  me  at  the  rate  of 
seven  per  cent,  interest,  on  that  portion  of  my  deposite  which  shall  ap- 
pear by  the  weekly  report  to  be  held  by  me  under  protest  ?" 

I  am  instructed  to  reply,  that  this  bank  will  accede  to  your  proposition 
to  allow  you  legal  interest  on  that  portion  of  your  deposite  which  shall 
appear  on  your  weekly  reports  to  be  held  by  you  vmder  protest. 

I  have  the  honor  to  remain,  very  respectfully,  your  obedient  servant, 

R.  WITHERS,  Cashier. 

Jesse  Hoyt,  Esq.,  Colleclor. 

In  continuing  the  examination  of  Mr,  Hoyt  on  the  succeeding  day, 
(February  6,)  it  appeared  that  both  prior  and  since  the  date  of  the  above 
correspondence,  (October  19,  1838,)  he  had  employed  two  banks  as  his 
agents,  to  receive  on  deposite  public  7nnncijs  collected  by  him,  not  re- 
sponsible to  the  Government,  but  to  himself  only  ;  and  not  in  his  capacity 
as  collector,  but  in  his  individual  capacity,  in  the  Bank  of  the  State  of 
New  l">r/t'and  the  City  Bunk.  He  then  disclosed  the  following  letters, 
which  had  passed  between  himself  and  these  two  banks  prior  to  October, 
and  not  alluded  to  in  the  examination  of  the  previous  day : 

City  Bank,  New  York,  Fridai/,  .ipril  27,  183S. 
Dear  Sir  :  I  have  understood  that  the  collector  is  not  at  liberty  to  re- 
ceive the  notes  of  any  bank  that  issues  bills  under  the  denomination  of 
five  dollars  ;  but  this  does  not  necessarily  debar  him  from  keeping  an  ac- 
count with  any  such  bank. 

For  any  sum  or  sums  of  money  which  the  collector  now  has,  or  may 
hereafter  have,  in  this  bank,  specie  will  be  paid  if  required.  In  fact,  his 
deposites  with  us,  in  whatever  they  may  be  made,  will  be  considered  and 
held  as  specie  deposites,  and  his  drafts  paid  in  sfjecie  or  otherwise,  at  the 
option  of  the  holder. 

Very  respectfully,  your  obedient  servant, 

G.  A.  WORTH,  Cashier. 
Jesse  Hoyt,  Esq.,  Collector. 


Rep.  No.  313.  115 

Custom-house,  New  York,  June  12,  1838. 
Sir  :  I  have  deputed  the  bank  of  whirh  you  are  cashier  my  agent  to 
aid  me  in  saiely  keeping  the  public  moneys  which  come  into  my  hands 
by  virtue  of  the  otiice  I  hold.  I  have  recently  received  a  circular  from 
lue  Treasury  Department,  under  date  of  the  1st  instant,  a  copy  of  which 
I  now  enclose  you,  and  the  requirements  of  which  I  expect,  as  my  agent, 
you  will  conform  to.  Yours,  &c. 

J.  HOYT,  Collector. 
To  Reuben  Withers,  Esq.,  Cashier. 

Bank  op  the  State  of  New  York,  June  12,  1838. 

Sir  :  I  am  authorized  by  the  board  of  directors  of  this  institution  to 
state  to  you,  that  for  all  deposites  made  by  you  in  this  bank,  your  drafts 
will  be  paid  in  specie,  (if  required.) 

I  am,  very  respectfully,  your  obedient  servant, 

R.  WITHERS,  Cashier. 
Jesse  Hoyt,  Esq. 

Mr.  Iloyt's  general  statements  and  estimates  of  his  possession  and  keep- 
ing of  the  public  moneys  being  unsatisfactory,  the  cashiers  of  the  two 
banks  mentioned  were  summoned,  and  appeared  on  the  6th,  although 
not  finally  examined  then  ;  and  Mr.  Hoyt  being  present,  had  knowledge 
of  the  fact.     The  examination  of  him  progressed  as  follows  : 

Question  12.  To  whom  has  the  7  per  cent,  interest  been  paid  by  the 
bank  or  banks,  for  the  use  ordeposite  of  the  money  under  protest,  as  yet? 

.6!nswer.  No  interest  has  been  paid  as  yet  by  the  bank  to  any  one,  as 
this  witness  knows.  No  interest  account  has  been  made  up  as  yet,  or 
been  required  to  be  made  up. 

Question  13.  What  amount  of  bonds  has  been  taken  by  j'-ou,  under 
protest,  up  to  this  day? 

^Inswer.  After  the  difficuUy  arose  under  the  circular  of  the  17th  of 
August,  the  protests  became  numerous,  and  I  suggested  to  the  bond  clerk 
to  open  bond  books,  called  "  protest  bond  books."  The  exact  time  that 
this  direction  was  given,  witness  does  not  recollect.  Prior  to  this  time, 
the  bond  intended  to  be  protested  was  generally  taken  out  of  the  ordina- 
ry bond  book,  and  filed  away  with  the  entry,  and  a  memorandum  thereof 
made  in  the  bond  book,  and  on  the  duplicate  entry  lodged  in  the  naval 
office.  I  have  directed  the  bond  clerk  to  make  up  the  number  of  such 
bonds  under  protest,  in  answer  to  the  niterrogatory,  and  the  amount 
thereof,  as  near  as  practicable,  and  beg  to  annex  that  statement  to  this 
answer,  as  the  best  answer  that  can  be  given  to  the  inquiry. 

Estimated  amount  of  bonds  taken  under  protest  from  the  following  pe- 
riods ;  one-half  of  which  is  payable  in  three  months  ;  the  other  half  in  six 
months  from  the  date  of  the  entry  of  vessels  : 

1838.  From  April  1st  to  September  30th,     -  -     543,182 
"           ''       October  1st  to  December  31st,  -  -       48,670 

1839.  January  2d  to  February  6th,  -     ^       -  -       54,260 


656  bonds,  amounting  to     ...  i?l46,l]2 

W.  BLUXOME,  Bond  Clerk. 
February  6,  1839. 


116  Rep.  No.  313. 

Question  14.  What  amount  of  bonds  taken  by  yon  under  protest  has 
been  paid  up  to  this  day? 

Jlnswer.  The  amount  of  money  held  by  me  under  protest  up  to  the 
close  of  business  yesterday,  was  ^127,119  39;  what  amount  is  for  bonds 
I  cannot  state,  without  a  minute  examination,  for  the  reason  that  a  por- 
tion of  that  sum  is  for  cash  duties,  under  protest ;  and  another  portion  is 
for  bonds,  under  protest.  I  have  not  kept  a  distinct  account  of  the  sum 
paid  for  cash  duties,  and  that  paid  for  bonds.  Tiie  annexed  statement 
shows  the  amount  of  tlie  weekly  returns  sent  to  the  Department  of  the 
Treasurer,  and  lodged  with  the  Bank  of  the  State  of  New  York,  and  also 
the  account  held  by  me  prior  to  tlie  circular  of  the  17th  of  August ;  and 
in  regard  to  the  last  amount,  which  I  estimated  from  memory  la.st  evening, 
I  now  beg  to  correct  by  this  statement,  made  out  by  the  clerk  who  has 
charge  of  that  busine&s. 

Amount  of  money  paid  under  protest : 

On  hand  prior  to  the  20th  August,  1838,  -  -  ^14,489  19 

"                   on  the  20th  October,  1838,  -  -  40,698  75 

«  27th       "              «  -  -  41,266  53 

"  3d  Nov'r,         "  -  -  42,983  03 

"  10th       "              «  -  -  44,948  01 

«  17th       "             "  -  -  46,756  37 

"  24th       "              "  -  -  51,489  78 

"■  1st  Dec'r,          "  -  -  54,743  92 

"  8th       "             "  .  -  -  55,388  59 

"  15th       "              "  >  -  62,436  09 

"  22d         "              "  -  -  73,134  83 

"  31st        "              "  -  -  81,871   7S 

"  5th  January,  1839,  -  -  84,545  54 

"  12th       "             "  -  -  90,707   10 

"  19th       '•             «  -  -  102,757  64 

«  26th       "             «  -  -  113,718  53 

«  2d  February,  "  -  -  124,443  95> 

Quest io7i  15.  Has  any,  and  what  amount  of  money  received  under 
protest  been  returned  to  merchants  ? 

Ansioer.  It  appears  from  my  book,  kept  by  the  clerk  who  has  charge 
of  that  branch  of  the  business,  that  of  the  gross  amount  of  money  paid 
under  protest,  the  sum  of  ^17,491  14  has  been  refunded,  which  book  con- 
tains the  record  of  all  that  has  been  received  and  refunded  under  protest ; 
and  the  balance,  after  deducting  what  has  been  refunded,  is,  as  belore 
stated,  the  sum  of  Sl27,119  39,  up  to  and  including  the  5th  day  of  Feb- 
ruary, 1839. 

Amount  refunded  up  to  20th  October,  1838,  -  -  iS  10,687  27 

"  27th       «  «  -  -  1,087  33 

"                        3d  Nov'r,  "  -  -  844  68 

«  lOrh       «  «  -  -  617  42 

«  17th       "  «  -  -  543   34 

"  2-1th       «  «  .  -  334   97 

«                        1st  Dec'r,  «  -  -  575  54 

«                       Sth      «  «  -  -  1,574  57 


Rep.  No.  313.  117 


^467 

62 

210 

79 

334 

66 

159 

12 

53 

82 

^17,491 

14 

Amount  refunded  up  to  15th  December,  1836, 
"  22d        "  " 

"  3lst       "  " 

"  12th  JaHuarv,  1839, 

a  igth        ''        '       " 


Question  16.  Has  any,  and  what  amount  of  money  received  by  you 
under  protest  been  paid  into  the  Treasury  of  the  United  States? 

*^insiver.  My  correspondence  with  tlie  Department  on  this  subject 
leaves  it  in  doubt  on  my  own  mind  how  I  am  to  consider  the  question 
with  reference  to  the  understanding  of  the  Department.  I  have  frequently 
stated  to  it  that  it  could  use  the  money  in  its  own  way  and  form  if 
adequate  protection  was  given  to  me.  In  answer  to  one  of  my  letters, 
the  Secretary  wrote  me  under  date  of  22d  of  December  last,  of  which 
the  following  is  a  copy  : 

Treasury  Department,  Dec^r  22,  1838. 

Sir  :  As  heretofore  intimated  to  you,  the  opinion  of  the  Attorney  Gen- 
eral has  been  taken  upon  the  subject  presented  in  your  letter  of  the  17th 
of  October  last,  a  copy  of  which  is  herewith  transmitted  for  your  inform- 
ation. 

In  view  of  this  opinion,  I  would  suggest,  that  the  moneys  held  by  you 
on  account  of  duties  paid  under  protest  by  the  parties,  as  also  those  re- 
ceived on  account  of  cash  duties  not  ascertained  at  the  time,  should  be 
placed  to  the  credit  of  the  Treasurer,  so  that  they  can  be  drawn  for  as 
needed ;  but  at  the  bottom  of  each  weekly  return  the  amount  held  for 
each  of  these  objects  may  be  enumerated. 

By  this  course  no  difficulty  will  arise  till  Congress  legislate  on  the  sub- 
ject, as  they  have  been  requested  to  do,  because  the  accruing  duties  will 
always  be  enough  to  refund  from,  and  the  Comptroller  or  m^'self  will 
give  proper  directions  in  all  cases  presented,  for  refunding  duties  which 
have  been  paid  under  protest. 

So  in  regard  to  duties  not  ascertained:  any  excess  or  deficiency  can  be 
regulated  afterwards,  when  the  duties  shall  have  been  actually  ascertain- 
ed, until  some  legal  provision  is  made  by  Congress. 

I  am,  very  respectfullv,  your  obedient  servant, 

LEVI  WOODBURY, 

Jesse  Hoyt,  Esq.,  Secretary  of  the  Treasury. 

Collector  of  the  CustomSj  New  York. 

The  following  is  a  copy  of  the  ophiion  of  the  Attorney  General,  re- 
ferred to  in  the  said  letter : 

Attorney  General's  Office,  Derr  19,  1838. 
ft  Sir  :  I  have  the  honor  to  acknowledge  yours  of  the  7th  instant,  in 
•which  you  state  that  "it  frequently  happens,  especially  at  the  larger  ports 
of  entry,  on  the  importation  of  some  particular  description  of  gotjds,  that 
the  importer  disputes  the  duty,  to  whic'i  the  collector,  acting  under  the 
instructions  of  the  Comptroller,  decides  the  articles  in  question  to  he  liable 


118  Hep.  No.  313. 

under  the  tariff  laws.  But,  with  the  view  of  getting  possession  of  his 
goods,  the  importer  pays  under  protest  the  amount  of  duty  demanded  by 
the  collector,  and  at  the  same  time  gives  that  o.licer  notice  not  to  pay  the 
money  over  to  Government,  and  immediately  institutes  a  suit  against  the 
collector  to  recover  back  the  amount  so  paid." 

'■  Under  these  circumstances,  the  following  question  arises,  viz:  Can  a 
collector  legally  retain  in  his  hands,  beyond  the  control  of  the  Depart- 
ment, and  distinct  from  his  other  funds  arising  from  duties,  moneys  so 
received  ?" 

In  answer  to  this  question,  I  would  say  that,  under  the  laws  of  Con- 
gress in  relation  to  duties  on  imported  articles,  it  is  the  duty  of  the  col- 
lector to  carry  into  execution  the  instructions  of  the  Treasury  Department, 
and  to  conform  his  acts  to  them.  If,  in  doing  this,  he  shall  collect  more 
money  than  the  judiciary  shall  afterwards,  in  an  action  against  the  col- 
lector by  the  importer,  adjudge  to  have  been  due  to  the  Government, 
there  can  be  no  doubt  that  it  is  the  duty  of  the  Government  to  save  the 
collector  from  injury.  But  the  question  you  present  is  of  a  very  different 
character.  It  is,  whether  the  collector  has  the  legal  right  to  retain  the 
money  so  received  in  his  own  hands,  beyond  the  control  of  the  Depart- 
ment, &c.  My  o})inion  is,  that  no  such  right  exists;  and  that  the  collector 
should,  notwithstanding  such  protest  and  suit  by  the  importer,  pay  over 
to  the  Treasury  all  moneys  by  him  received  under  such  circumstances,  as 
though  no  protest  had  been  made  or  suit  commenced. 

I  am  aware  that  it  may  be  said  that  this  course  would  expose  the  col- 
lector to  inconvenience  and  loss.  The  force  of  this  suggestion  is  not  per- 
ceived. Now  the  collector  keeps  the  money  in  his  possession  until  the 
controversy  is  decided  by  the  judiciary,  and  then  pays  over  to  the  Gov- 
ernment whit  m;iybe  in  his  hands — that  is,  the  Avhole  collected  by  him,  if 
the  importer  has  failed  in  his  action  ;  or,  if  the  importer  has  succeeded,  the 
balance  which  may  be  in  his  hands,  after  deducting  the  amount  of  the 
recovery  against  him.  My  impression  is,  that  the  law  never  intended 
that  money  collected  for  public  purposes  should  be  held  by  individuals  to 
await  the  event  of  lawsuits.  If  the  money  be  paid  into  the  Treasury,  and 
a  judgment  be  fairly  obtahied  against  a  collector  for  an  overcharge  of  du- 
ties, it  would  be  the  duty  of  the  Government  promptly  to  discharge  such 
judgment  and  release  the  collector  from  its  consequences. 

You  say  a  similar  point  arises  mider  the  following  circumstances  :  "On 
an  importation  of  goods  liable  to  cash  duties,  some  time  unavoidably  must 
elapse  before  the  duties  thereon  can  be  calculated,  and  the  exact  amount 
payable  ascertained.  It  appears  to  be  the  practice  in  such  cases,  to  re- 
ceive from  the  importer  a  sum  of  money  deemed  sufficient  to  cover  the 
amount  when  ascertained ;  and  any  deficiency  is  afterwards  made  up, 
or  the  surplus  refunded  by  the  collector,  as  the  case  may  be.  These  funds 
the  collector  designates  as  money  taknn  and  held  for  unascertained  duties.'* 

"The  same  question  as  the  foregoing  is  presented  in  this  case." 

It  seems  to  me  that  the  intention  of  those  who  originally  framed  our  rer- 
cnne  laws  was,  that  the  duties  should  be  ascertained  and  paid,  where  cash 
duties  are  imposed,  before  the  goods  are  delivered  to  the  owner.  But  it  is 
understood  that  in  some  ports  this  is  wholly  impracticable,  and  therefore 
a  departure  in  practice  from  the  idea  which  I  iiave  suggested  is  indis- 
pensable. 

This  state  of  things  could  not  have  been  foreseen  by  those  who  origi- 


Rep.  No.  313.  119 

nally  passed  the  acts  of  Congress  under  wliicli  the  revenue  is  still  collected. 
The  vast  increase  of  the  coninrierce  of  the  United  States,  and  its  concen- 
tration at  particular  port's,  renders  that  impracticable  wliich  at  an  early- 
period  could  easily  be  effected.  If  the  law  cannot  be  executed  according 
to  its  letter  and  probable  intention,  on  accouiit  of  the  altered  condition  of 
the  affairs  of  the  country,  Congress  alone  can  supply  the  proper  remedy. 
In  the  mean  time,  however,  until  Congress  shall  act,  such  Treasury  regu- 
lations should  be  adopted  and  enforced  as  will  best  secure  the  objects  of 
the  law.  It  could  never  have  been  the  intention  of  Congress  that  a  col- 
lector should  receive  money  for  duties  under  a  ])rivate  arrangement  with 
the  importer,  and  keep  the  money  in  his  hands  until  it  was  convenient  for 
him  to  cause  the  amount  of  duties  to  be  ascertained.  If  such  a  practice 
were  tolerated,  it  might  be  tlie  interest  of  the  collector  to  postpone  the 
ascertainment  of  the  duties,  as,  in  the  mean  time,  he  would  have  the  mi- 
controlled  use  of  the  money.  It  would  also  increase  the  danger  of  faith- 
lessness in  the  collector,  by  permitting  large  amounts  of  money  to  remain 
with  him,  and  under  his  individual  control,  instead  of  being  in  the  Treas- 
ury of  the  United  States,  The  tenor  and  spirit  of  all  our  revenue  laws  seem 
to  inculcate  the  idea  that  the  intention  of  Congress  has  at  all  times  been, 
that  money  collected  for  revenue  should  be  promptly  placed  in  the  Treas- 
ury, and  not  be  permitted  to  remain  in  the  hands  of  the  collectm-.  There- 
fore, in  any  regulations  you  may  make  upon  this  subject,  that  object 
should  be  constantly  kept  in  view. 

I  am,  sir,  very  respectfuUv,  vour  obedient  servant, 

FELIX  GRUNDY. 
The  Hon.  Secketary  of  the  Treasury. 

To  which  letter  of  the  Secretary  I  wrote  to  him  on  the  24th  of  Decem- 
ber as  follows  : 

New  York,  December  24,  1S3S, 

Sir:  I  wrote  you  on  Saturday  in  relation  to  the  form  of  keeping  the 
account  of  cash  deposited  for  unascertained  duties;  since  which,  I  have 
yours  of  the  22d,  accompanied  by  a  co])y  of  tlie  opinion  of  the  Attorney 
General  on  this  proposition,  as  well  as  on  the  propDsition  to  pay  over  the 
money  received  by  me  under  protest.  The.  reasoning  of  the  Attorm^y 
General  is  very  sound  on  both  points  as  to  what  the  law  should  be  ;  and 
would  be  entirely  satisfactory  as  to  what  it  actually  was,  if  the  highest 
judicial  tribunal  of  the  land  had  not  decided  on  one  of  them  contrary  to 
the  conclusion  at  which  the  Attorney  General  has  arrived.  He  does  not 
seem  to  have  adverted  at  all  to  tlie  decision  of  the  Supri.me  Court  in  the 
case  of  Elliot  against  Swartwout,  reported  in  10  Peters,  1.37,  M'here  the 
subject  was  discussed,  and  substantially  setiled,  that  the  collector  was  not 
bound  to  pay  over  the  money  to  the  Government  wh-'u  he  had  received 
notice  not  to  do  it.  But  he  says,  what  is  very  true,  that  "  if  the  money 
be  paid  into  the  Treasury,  and  a  judgment  be  fairly  obtained  against  a 
collector  for  an  overcharge  of  duties,  it  would  be  the  duty  of  the  Govern- 
ment promptly  to  discharge  such  judgment,  and  release  the  collector  from 
its  consequences."  The  duty  of  the  Goverumcnt  is  one  thing;  the  m  in- 
ner of  discharging  that  duty  is  another  and  different  thing.  It  would 
seem,  from  his  view,  that  a  judgment  must  not  only  be  obtained  agninst 
a  collector,  but  it  must  be  "foirly  obtained  ;"  and  of  this  the  Government 


120  Rep.  1^0,  313. 

is  to  be  the  judge,  as  a  preliminary  step  to  the  performance  of  an  act  of 
justice,  which  every  one  who  has  had  any  experience  with  the  action  of 
our  Government  knows  is  very  often  tardy.  I  do  not,  in  the  term  Gov- 
ermyioit,  as  used  by  me,  mean  the  present  or  any  other  administration  of 
that  Government,  for  the  one  is  but  the  agent  of  and  subordinate  to  the 
other. 

The  question  with  me  is,  whether,  under  the  present  nervousness  of 
collectors'  sureties,  I  ought  to  do  as  an  act  of  grace  to  the  Government  what 
the  law  does  not  compel  me  to  do.  That  tiie  law  ought  to  be  as  the 
Attorney  General  seems  to  be  of  opinion  that  it  is,  there  can  be  no  doubt. 
But  should  I,  who  am  already  borne  down  by  responsibilities  of  all  kinds, 
roluntarily  add  to  those  from  which  I  cannot  escape,  at  the  risk  of  every 
thing  ?  or  rather  should  I  not  look  to  the  language  of  the  court  in  the 
case  referred  to,  which  I  find  to  be  thus? 

"  Any  instructions  from  the  Treasury  Department  could  not  change  the 
law,  or  arfect  the  rights  of  the  plaiutitF.  He  was  not  bound  to  take  and 
adopt  that  construction.  He  was  at  liberty  to  judge  for  himself,  and  act 
accordingly.  These  instructions  from  the  Treasury  seem  to  be  thrown 
into  the  question  for  the  purpose  of  showing,  beyond  all  doubt,  that  the 
collector  acted  in  good  faith.  To  make  the  collector  answerable  after  he 
had  paid  over  the  money,  without  any  intimation  having  been  given  that 
the  duty  was  not  legally  c'nargcd,  cannot  be  sustained  upon  any  sound 
principles  of  policy  and  law.  There  can  be  no  hardship  in  requiring  the 
party  to  give  notice  to  the  collector  that  he  considers  the  duty  claimed  il- 
legal, and  put  him  on  his  guard,  by  requiring  him  not  to  pay  over  the 
money.  The  collector  would  then  be  placed  in  a  situation  to  claim  an  in- 
demnity from  the  Govenmient." 

This  "  indemnity  from  the  Government,"  alluded  to  by  the  court,  comes 
back  to  the  proposition  of  the  Attorney  General,  and  leaves  me  a  suppli- 
cant to  the  justice  of  the  Government,  without  the  power  of  enforcing  any 
claim.  I  propose,  when  I  go  out  of  othce,  that  my  accounts  with  the 
Government  shall  be  settled  in  one  hour  by  Shrewsbury,  or  some  other  good 
clock,  whether  that  going  out  be  by  death,  removal,  or  resignation;  and 
whatever  money  should  be  held  by  me  under  "protest,"  I  should  cause 
to  be  deposited  to  the  credit  of  the  Treasurer,  on  the  Government  enga- 
ging to  satisfy  the  claims  of  tlie  parties  protesting.  The  use  of  the  money, 
in  the  mean  time,  I  will  give  you,  in  any  form  you  choose  to  have  it,  ex- 
cept the  form  which  may  leave  me  to  the  tender  mercies  of  Congress,  or 
to  any  change  in  the  views  of  the  administration. 

I  will  report  to  you  weekly  in  any  form  you  suggest.  You  can  drav/ 
for  it  in  like  manner. 

Very  respectfully,  vour  obedient  servant, 

J.  HOYT,  Collector. 

I  also  received  from  the  Comptroller  of  the  Treasury,  on  the  1st  instant, 
a  letter,  bearing  dale  the  29th  of  January,  alluding  to  the  same  subject; 
to  which  I  replied,  under  date  of  the  1st  instant,  by  loiter,  in  the  fol- 
lowing words: 

CuSTOM-nOUSE, 

Nciu  York,  February  1,  1839. 
Sir:  I  have  your  communication  of  the  29th  January  last,  in  relation 
to  the  form  of  keeping  the  accounts. 


Rep.   No.  313.  121 

Since  the  1st  of  January-  the  money  deposited  for  unascertained  duties 
has  been  passed  inunediately  to  tiie  credit  of  the  United  States,  and  has 
formed  a  part  of  the  money  transferred  weekly  to  the  separate  credit  of 
the  Treasurer;  all  of  which  has  been  duly  notified  to  the  Secretary  of  the 
Treasury  and  the  Treasurer. 

I  have  laid  your  conmnnhcation  before  the  cashier  and  auditor,  and,  as 
soon  as  we  have  the  opportunity  to  confer  together,  we  will  advise  you 
of  the  time  when  we  shall  be  al)le  to  prepare  our  books  and  blank  forms 
of  returns  to  meet  the  suggestions  of  the  Department. 

I  write  now  to  say,  peremptorily,  that  I  will  not  pass  the  money  I  re- 
ceive under  protest  to  the  credit  of  the  United  States  until  Congress  makes 
provision  fur  my  protcclion.  For  the  reasons  of  this  course,  I  beg  to  refer 
you  to  my  former  connnunications  to  the  Depariment  on  the  subject. 
The  Supreme  Court  of  the  United  States  have  pronoimced  on  the  question; 
and  it  is  due  to  the  public  service,  as  well  as  to  the  oliicers  of  the  Govern- 
ment and  the  merchants,  to  have  the  question  definitively  settled.  If  I  per- 
severe in  the  course  which  the  highest  judicial  tribunal  of  the  land  has 
sanctioned,  the  duty  of  Congress  to  interfere  is  the  more  striking,  and,  I 
should  suppose,  could  not  but  lead  to  an  early  interference  by  Congress. 

The  money,  as  the  Department  has  been  advised,  is  drawing  seven  per 
cent,  interest.  The  fund  is  fast  increasing,  and  will  continue  to  increase 
until  the  litigated  points  are  adjusted  by  Congress. 

I  will  not  venture  to  speak  of  the  delay  or  inattention  to  the  public  busi- 
ness on  the  part  of  the  representatives  of  the  people,  because  it  would  not 
become  me  to  do  so:  but  if  any  other  class  of  public  servants  managed 
the  pubHc  business  in  the  same  way,  I  should  think  they  ought  to  be  dis- 
missed the  service  incontinently. 

Very  respectfully,  your  obedient  servant, 

J.  HOYT,  Collector. 

To  J.  N.  Barker,  Esq.,  Comptroller^  fyc. 

On  the  4th  instant  I  received  a  letter  from  the  Secretary  of  the  Treas- 
ury, under  date  of  2d  instant,  of  which  the  following  is  a  copy  : 

Treasury  Department,  February  2,  1839. 
Sir  :  I  have  to  request  that  you  will  deposite  the  sum  of  two  hundred 
thousand  dollars  in  the  Dank  of  America,  at  New  York,  to  the  special 
credit  of  the  Treasurer  of  the  United  States,  and  transmit  the  certificate  of 
deposite  to  this  Department. 

It  is  done  in  order  to  redeem  Treasury  notes, 

I  am,  respectfully,  your  obedient  servant, 

LEVI  WOODBURY, 

Secretary  of  the  Treasury. 
To  Jesse  Hoyt,  Esq.,  Collector. 

To  which  I  made  the  following  answer: 

Custom-house, 
Xeiv  York,  February  5,  1839. 
Sir:  Your  letter  of  the  2d  instant  did  not  reach  me  till  afier  business 
hours  of  yesterday.     By  this  letter  you  ••  request  me  to  deposite  the  sum  of 
§200,000  in  the  Bank  of  America,  to  the  special  credit  of  the  Treasurer  of 
9 


122 


Rep.  No.  313. 


tho  United  States."  Yon  omit  to  state  to  iiie  out  of  what  fund  iliis  deposit-? 
is  to  be  made.  By  i)revious  instruction,  I  was  directed  to  tra^tisler;  on  the 
Saturday  of  each  week,  to  the  separate  credit  of  the  Treasurer,  all  the 
moneys  in  my  hands,  to  be  appUed  to  the  drafts  of  that  officer.  I  liave 
contiuued  to  do  so  since  the  receipt  of  those  instructions.  I  accordingly 
transferred,  on  Saturday  last,  $130,000,  whieli,  by  my  weekly  returns 
transmitted  yesterday,  you  will  perceive  left  in  my  hands  the  sum  of 
§8,296  85  to  the  credit  of  the  United  States,  to  be  accounted  for  in  the 
next  returns,  part  of  which  had  been  actually  disbursed  for  the  benefit  of 
the  United  States,  and  charged  in  my  cash  book  to  suspense  account ;  the 
regular  vouchers  for  the  expenditure  not  having  been  rendered. 

You  may  have  intended  this  deposite  of  §200,000  to  be  applied  to  the 
moneys  received  by  me  under  protest  and  for  deposite  for  unascertained 
duties  prior  to  1st  of  January  last.  If  that  be  your  intention,  1  iiave  to 
observe : 

1,  It  will  appear  by  the  weekly  returns  transmitted  yester- 
day, that  the  fund  under  protest  amounted  to      -  -   ^124,443  95 

2.  Tliat  the  deposites  bv  the  same  return  amounted  to  the 

sum  of     -  -       '      -  -  -  -  -        54,.906  40 


Making  together  the  sum  of 

3.  My  nett  receipts  yesterday  were 

4.  Balance  on  hand  yesterday 


;i79,350  35 


^23,013  94 
8,29(i  85 


31,310   79 

^210,661    14 

The  sum  of  S31,310  79  is  the  only  sum  in  my  hands  to  the  credit  of  the 
United  States  for  the  general  balance  of  receipts  from  custom^.  But  in 
relation  to  the  two  hrst  items,  amounting  to  S  179,350  35,  I  have  to  say  : 

1.  Concerning  the  money  received  under  protest,  I  wrote  you,  on  the 
I9th  October  last,  that  I  had  made  an  arrangement  with  the  B.uik  of  the 
State  of  Now  York,  in  which  bank  I  kept  an  account,  to  receive  7  per 
cent,  interest  for  that  liind.  I  sent  you  a  copy  of  my  correspondence 
with  that  bank,  as  evidence  of  the  agreement,  which  you  have  not,  as  I 
believe,  dissented  from,  except  by  inference  from  the  fact  that  you  for- 
warded me  a  copy  of  an  opinion  of  the  Attorney  General  of  the  United 
States,  in  a  communication  under  date  of  December  22,  which  attenij)ted 
to  show  that  I  was  bound  to  pay  over  that  fund  to  the  credit  of  the  United 
States.  On  the  receij)t  of  which  opinion  I  availed  myself  of  the  first 
leisure  moment,  on  the  4th  of  January,  to  dissent  I'rom  it;  and  gave  you 
to  understand  that  I  would  not  consent,  under  any  circumstances,  to  be 
bound  by  it,  for  the  reason  that  the  Supreme  Court  iiad  decided  that  I 
was  not  bound  to  pay  over  money  under  such  circumstances.  Subse- 
quent to  this,  I  noticed  an  article  in  the  Washington  Globe  of  Januar}- 
23,  taking  the  same  ground  that  I  took,  in  an  essay  in  vindication  of  the 
Department  for  ivJglectiiig  to  call  on  Mr.  Swartwout  to  pay  over  the 
money  which  he  had  received  under  protest,  and  which  article  alluded 
to  the  decision  of  the  Supreme  Court  of  the  United  States  to  which  I  also 
referred. 

2.  I  wrote  to  the  Comptroller  on  the  1st  instant,  in  answer  to  his  in- 
structions under  date  of  the  29th  of  January,  that  I  peremptorily  refused 


Rep.  No.  313.  123 

to  pay  over  the  money,  for  the  reasons  assigned  in  my  prcvions  com- 
munication to  the  Department. 

3.  Under  this  state  of  things,  and  especially  as  the  United  States  was 
deriving  on  tii:'  fund  a  larger  niterest  than  it  was  paying  for  t!ie  money  it 
borrowed  on  Tre.isnry  notes,  and  in  my  judgment  was  securely  placed 
beyond  ;i.  possihiliiy  of  doubt,  I  did  not  think  the  Department  would 
draw  for  it,  ihougli  1  liad  frei[uently  written  ttiat  it  might,  provided  it 
was  drawn  in  such  a  manner  as  tj  alford  me  protection. 

4.  In  regard  to  the  deposite  for  unascertained  duties,  althoug'i  I  have, 
since  the  1st  of  January,  passed  the  money  immediately  to  the  credit  of 
the  United  Stales,  yet  I  have  serious  doubts  whether  I  ought  to  do  so  ; 
and  I  have  serious  daui)is,  also,  whether  I  wid  continue  to  do  so  after 
the  present  quarter,  unless  Congress  legislates  upon  the  subject.  Recent 
investigations  and  developments  admonish  me  of  the  importance  of 
assuming  no  more  responsibilities  than  are  thrown  upon  me  by  poshive 
enactments  of  law.  The  receipts  1  give  for  deposites  for  unascertained 
duties,  make  me  personally  responsible  for  tlie  ditference  between  the 
duties  actually  accruing  and  the  sum  deposited  ;  and  which  siun  deposited 
I  immediately  pass  to  the  credit  of  the  United  States,  without  any  posi- 
tive guaranty  that  the  United  States  will  refund  the  dilference  in  dis- 
charge of  my  personal  liability. 

I  go  into  this  discussion  now  for  the  purpose  of  suggesting  the  expe- 
diency of  your  asking  the  C.)mmittee  of  Ways  and  iMeans  to  embrace 
this  question  as  a  kindred  one  to  the  protest  subject,  and  that  a  section 
should  be  introduced  to  obviate  the  ditticulty  on  this  as  well  as  the  pro- 
test question. 

I  have  given  you  now  the  substance  of  the  pecuniary  condition  of  mv 
oflicial  adairs.  I  have  deposited  the  $^00,000  as  you  request.  If  the 
Treasurer  draws  for  all  that  stands  to  his  credit,  I  may  be  compelled  to 
annul  the  agreement  with  tne  State  Bank,  without  your  direct  authority, 
unless  yoa  intendi'd  to  anticipate  the  receipts  of  all  this  week,  the  proba- 
ble am.onnt  of  which  I  have  not  had  the  leisure  to  ascertain  from  investi- 
'gation.  Our  cash  duties  yesterday  were  short  of  g  10,000,  which  is  a 
fallins:  otT.  We  have  been  somewhat  busy  since  the  committee  have 
been  here,  as  you  may  well  imagine;  and  it  has  been  with  dilficulty  I 
liave  been  able  to  get  off  my  ordinary  accounts.  The  auditor  has  been 
before  it  most  of  the  time  for  the  last  tan  days. 

In  your  future  directions  for  the  deposite  of  money,  I  would  be  glad  of 
a  designation  of  the  fund  from  which  the  deposite  is  to  be  made.  I  de- 
sire only  to  have  matters  of  this  kind  ilistinctly  understood.  I  endeavor 
to  give  you,  from  lime  to  time,  sucii  minute  details  of  our  business  at  this 
port  as  to  keep  you  well  informed  on  tht^  subject ;  and  I  do  not  fail  to 
object  in  time  to  any  proposed  arrangement  which  strikes  me  to  be 
objectionable;  and  to  this  end  I  have  made  this  communication.  I  have 
apprized  the  Treasurer  of  the  deposite,  and  sent  him  a  duplicate  receipt. 
I  am,  sir,  very  respectfully,  your  obedient  servant, 

J.  IIOYT,  Collector. 

Hon.  Levi  Woodbl'rv,  Secretary,  i^-c. 

Under  this  state  of  things,  it  is  a  matter  of  doubt,  in  my  own  mind, 
whether  by  implication  I  have  or  noi  paid  the  protest  fund  into  the 
Treasury. 


124  Rep.  Xo.  313. 

I  omitted  to  slate,  in  the  proper  place,  another  reason  for  the  accumu- 
lation of  protests;  which  was,  as  I  supposed,  owing  to  the  fact  of  the  De- 
partment iiavinq  decided,  in  June  last,  that  it  could  not  refund  money 
received  by  Mr.  Swartwout,  except  it  was  paid  to  him  under  protest,  and 
that  in  all  othtr  cases  application  must  be  made  to  Congress.  This,  in 
my  judgment,  tended  to  an  accumulation  of  protests. 

In  reference  to  that  part  of  the  letter  last  referred  to,  which  adverts  to 
the  deposites  for  unascertained  duties,  it  will  be  seen  that  I  raise  a  doubt 
OS  to  the  Yisht  of  the  Government  to  liave  the  moneys  deposited  for  un- 
ascertained duties  placed  to  its  credit  at  the  time  the  deposite  is  made. 
That  doubt  is  now  again  referred  to,  from  the  fact  that  a  claim  was  made, 
a  few  days  since,  for  a  deposite  on  a  certificate  therefor  alleged  to  be  lost. 
I  refused  payment,  on  the  ground  that  the  certificaie  was  negotiable,  and 
it  must  be  surrendered  up  on  payment;  when  a  suit  was  threatened,  * 
which  led  me  to  examine  the  terms  of  such  kind  of  certificates,  and  I 
came  to  the  conclusion  that  the  collector  was  personally  responsible  ;  and 
in  the  event  of  the  whole  deposite  being  placed  to  the  credit  of  the  United 
States,  the  collector  would  be  compelled  to  refund  from  his  own  means, 
in  case  of  a  recovery,  and  that,  therefore,  the  money  so  deposited  for  un- 
ascertained duties  depends  upon  the  same  question  as  that  involved  in 
the  money  paid  under  protest. 

It  has  been  universally  considered  at  this  port,  as  I  have  understood, 
and  always  believed,  that  the  deposites  for  imascertained  duties  were  not 
public  moneys ;  and  the  various  collectors  heretofore  occupying  the  place 
have  not  considered  them  as  such.  The  importers  have  a  right  to  de- 
posite portions  of  their  invoices  as  security  for  duties  on  the  remainder, 
which  does  not  operate  as  a  change  of  property  in  the  thing  deposited,  but 
remains  as  a  pledge  in  the  hands  of  the  pledgee,  who  is  the  person  hold- 
ing the  office  of  collector,  and  he  alone  is  responsible  for  the  forthcoming 
of  that  pledge. 

Having  heretofore  yielded  to  the  suggestions  of  the  Department  in  re- 
lation to  this  fund,  from  the  1st  of  January  last,  without  raising  a  question 
on  this  point  of  legal  right,  or  the  necessity  of  legislative  protection,  but 
assenting  to  what  might  be  deemed  a  sacrifice  to  public  opinion,  as  con- 
nected with  recent  developments,  I  now  raise  the  question  before  those 
who  can.  by  their  public  situations,  do  much  to  remove  those  doubts  by 
the  enactment  of  laws. 

Since  writing  most  of  the  preceding  answer,  I  have  received  a  letter 
from  the  Secretary  of  the  Treasury,  under  date  of  February  4,  in  the 
words  following ;  which  seems  to  be  a  reply  to  my  letter  to  the  Comptroller 
of  the  1st  of  February  : 

Treasury  Department,  Fch7'u(n'y  4,  1S39. 
Sir  :  Finding  from  a  report  just  made  to  me  by  tlie  Comptroller,  that 
new  difficulties  have  arisen  between  that  officer  and  yourself,  in  regard 
to  the  disposition  of  the  funds  received  ''for  duties  paid  under  protest,"  1 
propose,  with  a  view  to  obviate  those  difficulties,  to  have  a  weekly  state- 
ment furnished  to  this  Department  by  the  bank  holding  the  fund  paid  for 
duties  under  protest;  and  to  have  a  stipulation  from  the  bank  to  the 
United  States,  that  it  be  held  solely  to  be  drawn  out  to  pay  refunded 
duties  on  your  part,  and,  in  all  ca.ses  when  not  refunded,  the  amount  on 


Rep.  No.  313.  125 

deposite  to  be  carried  to  the  credit  of  the  Treasurer  of  the  United  States, 
and  to  be  drawn  out  by  him. 

I  liave  to  request  that  you  will  submit  this  proposition  to  the  bank,  if 
acceptable  to  you;  and  if  acceded  to  on  its  part,  you  will  be  i)leased  to 
forward  a  stipulation  from  tiie  bank  to  the  United  States  to  that  effect. 

You  will  be  required  to  forward  monthly  statements  of  your  transactions 
under  this  arrangement,  until  Congress  legislate,  or  a  further  opinion  is 
obtained  from  tlie  Auorney  General. 

By  this  arrangement  you  and  the  Govermnent  will  both  be  secure. 

I  am,  very  respectfully,  your  obedient  servant, 

LEVI  WOODBURY, 

Jesse  Hoyt,  Esq.,  Sccrelury  of  the  Treasury. 

Collector  of  the  Customs,  New  York. 

Question.  17.  Are  tbc  letters  and  correspondence  already  presented  in 
your  answers  all  the  communications  from  the  Secretary  of  the  Treasury 
to  you,  or  from  you  to  him,  or  from  the  bunks  to  you,  or  from  you  to 
them,  addressed  to  and  from  you  as  collector  or  individually,  in  relation 
to  your  duties  as  collector,  and  to  the  funds  in  your  hands  under  protest 
or  otherwise  ? 

Answer.  I  sent  to  the  committee  on  the  SOrh  of  January  all  the  ollicial 
letters  up  to  the  17th  of  Jaruiary,  from  the  Treasury  Department  to  me, 
in  relation  to  the  collection  and  disbursement  of  the  public  moneys,  so  far 
as  I  was  able  to  discover  them  in  my  possession,  and  so  far  as  I  now 
recollect.  I  have  alluded  to  all  that  I  have  since  received  in  my  former 
answers  ;  and,  I  also  believe,  have  given  you  copies  of  all  my  letters  to 
the  Department  on  that  subject,  bearing  date  since  tiie  17th  of  January. 
I  have  given  you,  also,  copies  of  all  my  correspondence  with  the  banks  in 
relation  to  matters  inquired  about.  I  have  received  at  various  times 
private  and  unofficial  letters  from  the  several  oiiicers  of  the  Treasury 
Department,  which  I  do  not  feel  myself  at  liberty  to  surrender  or  lay  be- 
fore the  committee,  without  the  consent  of  the  writers.  I  have  never 
been  requested  to  withhold  those  letters,  or  any  other  information  what- 
ever ;  but  as  the  committee  have  the  power  to  call  for  copies  of  sucii  letters 
from  the  writers  thereof,  I  would  prefer  that  the  writers  should  take  the 
responsibility,  if  any  there  be,  in  relation  to  the  revelation  of  a  private 
correspondence. 

It  will  readily  be  perceived  from  the  preceding  testimony,  that  nothing 
definite  or  satisf.ictory  could  be  gathered  by  the  committee  as  to  the 
amount  of  public  money  actually  on  hand  in  bank  to  the  credit  of  Mr. 
Hoyt, either  derived  under  protest,  or  otherwise,  however  explicit  the  tes- 
timony may  be  considered  in  its  designation  of  the  only  banks  employed 
by  him  as  depositories,  or  of  the  terms  upon  which  they  are  officiating  as 
his  depositories.  How  much  of  these  same  deposites  have  been,  from 
time  to  time,  drawn  out  and  used  by  Mr.  Hoyt  for  purposes  of  specula- 
tion, expected  to  yield  more  than  the  seven  per  cent,  interest  he  had 
arranged  for  in  relation  to  a  part  of  it ;  or  whether  it  has  been  more 
frequently  drawn  out,  or  for  other  purposes  used,  than  has  been  demand- 
ed by  ills  oflicial  duties ;  or  whether  the  amount  of  his  deposites  now 
on  hand,  either  of  protest  money,  or  of  other  money  collected  by  liim 
for  the  Government,  corresponds  with  the  amonnt  which  should  be  on 
hand ;  and  whether  or  not,  by  the  transfers  in  the  books  of  his  banks, 


126  Kep.  No.  313. 

the  Government  appears  to  liave  actually  received  any  of  the  protest 
money  or  not,  about  wliicli  Mr.  Hoyt  atiecls  to  be  in  doubt,  ivS  in  no  satis- 
factory degree  disclosed  by  Mr.  Hoyt.  Only  allusion  being  made  to  some 
of  his  answers  from  the  Department,  witliout  furnishing  copies  of  more 
than  it  answered  iiis  own  jiurpose  to  select,  and  a  refusal  to  disclose  the 
oriiiinals,  or  the  im])ort  of  others,  beinir  also  made  on  the  ground  of  their 
being  "pj-iva/e  and  imajJiciaU'''  nithoiigh  relating  to  the  public  moneys, 
it  is  obvious  that  the  relations  of  Mr.  l;oyt  to  ilie  jmblic  moneys,  and  the 
correctness  of  his  returns,  could  not  but  assume,  in  the  estimation  of  tlie 
committee,  a  most  suspicious  aspect;  and  that  neither  the  duty  which  the 
committee  owed  to  itself,  or  to  the  House  and  country,  would  justify  them 
in  leaving  untried  otlier  sources  of  j)osilive  and  record  information  on  the 
subject  ol'  this  inquiry. 

But,  beyond  and  paramount  to  the  considerations  just  adverted  to,  which 
cast  shadows  over  Mr.  Hoyt's  })Ossession  and  oflicial  returns  in  relation 
to  the  public  money,  however  correct  these  may  be  in  form,  the  committee 
could  not  but  feel  new  admonitions  to  persevere  in  reaching  the  true  state 
of  his  accounts,  from  the  disclosure  in  the  correspondence  of  Mr.  Hoyt 
with  tjie  Treasury  Department  in  his  foregoing  testimony,  wherein  lie  sets 
up  absolute  contiol  over  laige  and  accumulating  sums  of  the  public 
money,  not  only  against  the  advice  and  instructions  of  the  Comptroller  of 
the  Treasury,  and  of  the  Secretary  of  the  Treasury,  but  also  against  the 
official  decision  of  the  Attorney  General,  and  in  the  spirit  and  the  language 
of  contemptuous  disregard  of  tliem  all !  If  any  thing  was  left  to  add  alarm 
to  the  minds  of  the  committee,  on  discovering  sucli  to  be  the  condition  of 
the  jiublic  moneys  at  a  port  where  nearly  two-tliirds  of  the  whole  revenue 
is  collected,  it  is  to  be  found  in  the  tamencss  with  which  the  accounting- 
officers  of  the  Treasury,  and  the  Secretary  of  the  Treasury,  have  submit- 
ted to  so  dangerous  an  assumption  of  power  in  a  subordinate  executive 
officer.  In  the  judicial  authority  upon  which  this  collector  falls  back  and 
hurls  deiiancc,  if  not  contempt,  at  the  instructions  and  opinions  of  the  wliole 
corps  of  superior  executive  officers  to  whom  he  is  accountable,  nothing  is 
to  be  found  to  justify  the  one  for  asserting,  or  to  excuse  the  other  for  sub- 
mitting to  a  practice,  which  the  Attorney  General  has  justly  characterized 
in  liis  decision  as  calculated  to  interest  the  collector  in  posl]:o)ii7ig  the 
ascertainment  of  duties,  that  he  may  in  the  vieiin  time  have  tlie  use  of 
the  money  ;  aiid  to  ''  iyicrcasc  the  danger  of  faithlessness  in  the  collector, 
by  jicrrnitliiig  large  amonnls  of  mejncy  to  Teviain  with  hi^n,  and  under 
his  individual  control,  instead-  of  /icing  in  the  Treasury  of  the  United 
States.'' 

Tlie  judicial  decision  cited  l)y  the  cf)Uector  conveys  no  authority  to 
the  collector  for  refusing  to  take  and  adopt  the  construction  of  law  in  re- 
gard to  duties  i)aid  under  protest,  which  the  ax'counting  officers  of  the 
Treasury  enjoin  upon  the  observance  of  the  collector.  The  opinion  of 
the  Attorney  General,  on  the  other  hand,  expressly  declares,  "it  is  the 
duty  of  the  collector  to  carry  into  execution  the  instructions  of  the  Treas- 
ury De[)artment,  and  to  conform  his  acts  to  them."  Nor  does  the  court 
indicate  that  the  collector  is  at  liberty  "to  judge  for  himself,  and  act  ac- 
cordingly." These  attributes/ are  only  accorded,  by  the  decision  of  the 
court  cited,  to  the  party  paying  the  duties,  and  not  to  the  collector  who 
receives  them;  to  the  individual  plaintitf,  and  not  to  tlie  defendant  officer. 
And  the  language  of  the  court,  that  the  collector  is  by  the  protest  "placed 


Rep.  No.  313.  127 

in  a  situation  to  claim  an  indemnify  from  the  Government,"  clearly  indi- 
cates that  this  indemnity  of  the  collector  is  to  be  sought  rightfully  after, 
and  not  before,  the  duties  ])aid  have  been  adjudged  by  the  competent  tri- 
bunal to  be  a  wrongful  exaction. 

It  may  be  added,  that  even  in  the  libertinism  of  Mr.  Swartwout^s  co)i- 
trol  and  use  of  the  public  m.oney  is  to  be  fonnd  no  precedent,  until  his  re- 
tirement from  office,  and  his  actual  defalcations  must  otherwise  be  ex- 
posed, for  the  course  thus  pursued  by  the  present  collector  in  relation  to 
moneys  under  protest.  This  course  originated  only  with  the  latter.  The 
testimony  that  follows  is  explicit  on  this  point. 

Mr.  Fleming,  audilor  of  the  custoins,  examined  by  Mr.  Owens. 

Question  5S.  From  your  position  in  the  custom-house  at  New  York, 
and  your  Vinowledge  of  the  manner  of  transacting  its  business  and  keep- 
ing the  accounts,  say  whether  o?ie  of  (he  principal  causes  of  theiate  de- 
falcations was  not  the  practice  of  the  collector  retaining  large  sums  of 
money  in  his  hands  to  meet  stdts  or  protests  for  duties  overpaid.  State 
how  long  such  practice  has  been  in  existence;  whether  it  was  established 
by  the  Department  at  Washington:  or  whetlier,  under  the  decisions  of  the 
courts  of  justice,  the  collector  is  not  considered  perso?ialli/  responsible  for 
such  claims,  and  therefore  authorized  by  the  same  decisions  to  retain  in 
his  hands  the  money  of  the  United  States  to  meet  them? 

t^inswer.  Mr.  Swartwout,  on  his  retirement  from  office,  retained  tlie  sum 
of  about  §201,000;  and  assigned  as  a  reason  to  the  Secretary  of  the  Treas- 
ury, that  it  was  to  protect  himself  against  judgments  upon  suits  at  law  for 
duties  alleged  to  have  been  wrongfully  exacted,  and  paid  under  protest ; 
but  he  was  not  in  the  practice,  during  his  collectorship,  of  retaining 
moneys  for  such  purposes.  When  duties  were  paid,  the  amounts  v\'ere 
placed  to  the  credit  of  the  Treasurer  of  the  United  States  at  once ;  and  in 
the  event  of  a  decision  being  obtained  against  the  collector  upon  any  suit 
at  law,  it  was  his  practice  to  write  to  the  Comptroller  of  the  Treasury 
upon  the  subject,  to  obtain  his  authority  for  the  payment  of  the  judgment. 
The  collector  is  considered /?er.so?i.'///y  responsible  tor  ail  such  claims,  and 
execution  issues  against  his  private  property. 

Impelled,  therefore,  by  the  strongest  sense  of  duty,  to  obtain  the  fullest 
information  on  the  subject  of  Mr.  Hoyt's  deposite  and  use  of  the  public 
money,  as  the  only  test  of  the  correctness  of  the  returns  he  has  made  to 
the  Treasury  Department  since  he  has  been  in  office,  the  committee,  on 
xhe  6th  of  February,  commenced  the  examination  of  the  two  cashiers 
mentioned  by  Mr.  Hoyt.  The  following,  from  the  connnitiee's  journal, 
illustrates  this  proceeding: 

Gorham  Ji.  Worth  was  sworn  as  a  witness. 

Examined  hy  Mr.  Smith, 

Question  1.  Are  you  cashier  of  the  City  Bank  of  New  York,  and  are 
you  in  charge  of  the  books  of  record  and  accounts,  and  the  official  papers 
of  said  bank?     Has  said  bank  been  a  deposhe  bank  of  the  Govennnent 


128  Rep.  No.  313. 

of  the  United  States  ?  If  not,  has  it  been  a  deposile  bank  of  the  present 
collector  of  the  port  of  New  Yoik  ?  If  yea,  when  did  his  fust  deposite  as 
collector  commence  ?  And  has  he  ke])t  an  individual  deposite  ni  your 
bank,  apart  from  ins  account  as  collector  ? 

Jinswer.  I  am  cashier  of  the  City  Bank,  and  have  charge  of  die  books, 
&c.  The  City  Bank  has  not  been  a  Government  deposite  bank  at  any 
time.  It  has  been  a  deposite  bank  of  the  present  collector  of  this  port. 
The  account  was,  in  the  first  place,  opened  with  Mr.  Hoyt,  as  collector — 
say  on  the  4th  of  April  last.  That  account,  however^  was  closed  after  a 
short  time — some  30  days — and  the  account  then  opened  with  Mr.  Hoyt 
in  his  individual  capacity,  and  so  remains  at  this  time. 

Question  2.  In  Mr.  lioyt's  individual  account,  referred  to  in  your  last 
answer,  has  there  been  made  any  designation  by  Mr.  Hoyt  of  the  sources 
from  which  any  portion  of  his  funds  thus  deposited  are,  or  have  been,  de- 
rived ?  What  agreement,  if  any,  lias  existed,  and  what  agreement  still 
exists,  between  said  bank  and  Mr.  Hoyt,  relative  to  said  deposites  ?  Please 
state,  in  detail,  wlien  it  commenced,  and  whether  any  that  now  exists  is 
the  substitute  of  any  previous  agreement;  and  also  Mduit  such  previous 
agreement  was,  and  when  made. 

Ansiver.  Mr.  Hoyt's  deposites  were  made,  like  all  other  deposites  in 
bank,  by  simply  leaving  the  money  to  be  placed  to  his  account,  without 
any  designation  other  than  the  aminini,  at  the  time  of  deposite.  The  only 
ugreemenf  made  with  Mr.  Hoyt  was.  tliat  his  deposite  should  be  consid- 
ered as  gold  and  silver,  and  that  his  checks  should,  at  all  times,  if  required, 
be  paid  in  gold  and  silver.  This  agreement  was  made  at  the  time  of  his 
first  deposite. 

Question  3.  What  has  been  the  aggregate  monthly  balance  of  said  de- 
posites siuce  the  agreement  to  which  3'ou  allude? 

[The  witness  was  permitted  to  take  this  question  away  with  him,  in 
order  to  obtain  the  details  of  the  answer  required.] 

On  the  7th  of  February,  Mr.  Worth  appeared  and  answered  as  follows; 
(Extract  from  comiTiittee's  journal.) 

Examination  of  M/'.  IVort h  xe'^iwmeA. 

E.va')Hincd  by  Mr.  Smith. 

Question  3.  [This  question  the  Avitness  had  been  permitted  to  take 
away  with  him  yesterday.     See  journal.] 

3.  What  has  been  the  aggregate  monthly  balance  of  said  deposites  since 
the  agreement  to~  which  you  allude  ? 

Answer.  In  reply  to  the  above  interrogatory,  ])ro])ounded  to  me  yester- 
day, (rjth  Feliniary,)  I  answer,  that  I  decline  answering  it :  not  deeming 
myself  at  liberty,  by  the  rules  and  regulations  of  the  bank,  to  expose  the 
details  of  an  individual  depositor's  account. 

Question  S.  Have  you,  since  the  above  interrogatory  was  ])ropounded 
to  you,  had  a  consultation  with  Mr.  Hoyt  on  the  subject  of  the  said  inter- 
rogatory .•'     If  yea,  please  state  the  substance  of  such  consultation. 

Answer.  I  must  decline  answering  the  question. 


Rep.  No.  313.  129 

Mr.  Withers  was  also  called  again  on  the  same  day,  and  examined  as 
follows : 

Examination  of  Reuben  fVithers. 

Exatnined  by  Mr.  Siniih. 

Question  1.  Are  yon  cashier  of  the  Bank  of  the  State  of  New  York,  in 
the  city  of  New  York;  and  are  you  in  charge  of  the  books  of  records  and 
accounts,  and  the  official  papers  in  said  bank  ?  Has  said  bank  been  a 
deposite  bank  of  the  United  States?  Has  it  been,  or  is  it  now,  a  deposite 
bank  of  the  present  collector  of  New  York?  If  yea,  when  did  his  fn'st 
deposite  as  collector  commence  ?  Has  Jesse  Hoyt  kept  an  individual 
account  and  deposite  in  your  bank,  apart  from  his  account  as  collector? 

Jinsioer.  I  am  cashier  of  the  Bank  of  the  State  of  New  York,  and  have 
charge  of  the  books  of  records  and  accounts,  and  official  papers  of  said 
bank. 

Said  bank  has  not  been  a  deposite  bank  of  the  United  States. 

I  beg  leave  to  answer  by  giving  a  copy  of  a  letter  from  the  collector, 
dated  June  12,  1838,  on  which  day  a  deposite  was  made  by  Mr.  Hoyt  in 
his  own  name,  and  the  account  has  been  so  continued  to  the  present  time; 
which  is  the  only  acconnt  kept  by  this  bank  with  Mr.  Hoyt. 

[The  letter  of  June  12th,  exhibited  by  witness,  as  also  the  other  letters 
subsequently  alluded  to  in  Iiis  testimou)!',  are  the  same  as  heretofore  given 
in  conjunction  with  Mr.  Hoyt's  testimony.] 

Question  2.  Mr.  Hoyt's  account  in  your  bank,  though  in  his  individual 
name,  being  represented  in  your  answer  to  the  foregoing  interrogatory, 
and  in  the  letter  of  Mr.  Hoyt  of  the  12th  June  last,  to  be  an  account  of 
public  money,  you  are  asked  what  agreement,  if  any,  was  made  between 
you  and  Mr.  Hoyt,  either  verbal  or  written,  in  respect  to  his  account  on 
deposite  of  mone^^  in  your  bank.  Was  there  any,  and  what,  agreement 
or  understanding  that  the  bank  should  pay  interest  on  the  deposite,  or  any 
part  of  the  deposite,  and  what  part,  and  what  rate  of  interest  ? 

^nsioer.  From  the  12th  June,  1838,  to  the  19th  of  October,  no  agree- 
ment, either  written  or  verbal,  was  made  with  Mr.  Hoyt  in  regard  to  his 
account,  except  that  his  checks  should  be  paid  in  the  legal  currency  of  the 
United  States  when  required  by  the  holder.  On  the  lytli  of  October  I 
received  a  letter  from  him,  a  copy  of  which  I  now  enclose,  with  a  copy 
of  my  answer.  Since  that  time  I  have  been  furnislied  with  a  weekly 
statement  of  the  amount  held  by  him  under  protest,  subject  to  that  agree- 
ment. 

Question  3.  What  has  been  the  aggregate  weekly  balance  of  said  de- 
posites  in  your  banlc  since  the  commencement  of  Mr.  Hoyt's  account  in 
your  bank  as  collector,  and  since  his  deposite  of  public  money  in  his  own 
name  with  your  bank  commenced  ? 

,/lnstver.  I  do  not  feel  warranted  in  answering  this  question  without 
the  authority  of  the  board  of  directors. 

At  the  foregoing  examinations  Mr.  Hoyt  was  present,  and  heard  the 
refusal  of  eacli  cashier  to  furnish  the  committee  with  the  information  de- 
sired. They  took  place  at  the  day  session  of  the  committee,  at  the  custom- 
house, on  the  7th  of  February.  At  the  evening  session  of  the  same  day, 
the  examination  of  Mr.  Hovt  was  contiiuied  as  follows : 


130  Eep.  No.  313. 

Examined  by  Air.  Sm ith. 

Question  23.  Please  state  what  have  been  the  aggregate  weekly  bal- 
ances of  your  deposite  accounts  in  the  Bank  of  tlie  State  of  New  York 
and  the  City  Bunk  of  New  York,  respectively,  since  you  commenced  ma- 
Icing  deposites  of  the  public  money  as  collector,  or  in  your  individual  name, 
in  said  banks  respectively. 

Ansioer.  I  cannot  state  what  has  been  that  aggregate  balance.  My  rule 
is  to  have  the  bank-book  balanced  on  the  last  day  of  each  month ;  but  I 
cannot  state  from  memory  what  the  aggregate  monthly  balance  is.  It 
varies  very  much.  I  do  not  make  up  weekly  balances,  and  it  is  only  when 
the  bank-book  is  balanced  that  the  true  balance  in  bank  appears  upon  the 
exanjination  of  both  parties — that  is,  the  drawer  and  payer  of  the  checks. 
It  has  frequently  happened  that  the  Treasurer  has  drawn  on  me  for  more 
money  than  appeared  by  my  weekly  returns  to  be  to  his  credit ;  but  such 
drafts  have  always  been  met  and  paid,  and  are  drawn  on  anticipated 
weekly  receipts ;  and  it  frequently  happens  that  drafts  are  drawn  on  me 
that  are  not  presented  for  payment  in  20,  30,  or  40  days ;  and  often  drafts 
are  protested  in  consequence  of  the  regulations  of  the  raih'oad  line  between 
this  and  Washington,  before  any  notice  of  the  same  having  been  drawn  ; 
but  such  drafts  have  also  always  been  paid. 

Question  24.  Will  you  explain  how  drafts  or  warrants  on  you  can 
affect  your  hank-account  of  deposites,  so  as  to  alter  the  balance  thereof, 
until  after  such  drafts  or  warrants  have  been  presented  to  you,  or  you 
are  called  on  to  meet  the  same  ? 

,/2nsioei\  The  drafts  on  me  are  paid  generally  by  my  checks  on  banks, 
and  the  amount  of  checks  drawn  for  such  drafts  materially  affects  the  bal- 
ance I  have  m  bank  ;  which  balance  grows  out  of  deposites  made  and 
checks  drawn,  I  do  not  recollect  that  any  "  warrants"  have  been  pre- 
sented to  me  for  payment,  and,  therefore,  I  do  not  refer  to  any  such  trans- 
actions ;  therefore  they  do  not  affect  my  balance  in  bank,  nor  does  any 
draft  on  me  alfect  my  balance  in  bank  until  I  have  checked  for  that  draft. 

Question  25.  Do  you  or  not  keep,  or  cause  to  be  kept,  by  a  clerk,  a 
book  into  which  is  entered  every  deposite  in  bank  of  the  public  money 
which  you  make,  and  also  every  check  you  draw  upon  such  deposites; 
and  if  yea,  can  you  not  by  such  book  tell  the  balance  you  have  on  de- 
posite at  any  desired  periods  ? 

Jlnswer.  I  keep  no  official  bank-account,  nor  have  I  any  authority  to 
keep  such  accounts.  I  employ  the  banks  as  my  own  agents,  and  not  as 
agents  of  the  Government.  1  make  no  distinction  in  such  deposites  be- 
tween my  own  money,  and  the  money  for  which  I  am  responsible  to  oth- 
ers. I  keep  no  separate  book  of  deposites  for  money  of  my  own,  and 
money  for  which  I  am  responsible  to  others.  I  deposite  money,  if  I  have 
any,  belonging  to  professional  clients,  in  the  same  banks,  to  the  same  ac- 
count that  I  deposite  other  money;  and  the  banks  know  no  distinction  as 
to  the  persons  who  may  have  a  claim  upon  me  for  that  money,  except  the 
Bank  of  the  State  of  New  York,  as  to  a  portion  (as  before  stated)  of  that 
deposited  relating  to  money  paid  under  protest.  I  could,  by  an  examina- 
tion of  my  bank-book,  tell  the  amount  of  deposite  and  the  balances  weekly; 
but  for  the  amount  of  money  1  am  answerable  for  to  the  United  States, 
I  can  only  tell  by  an  examination  of  the  books  of  the  collector's  office, 
which  I  will  submit  to  the  committee,  when  it  will  have  the  opportunity 


Rep.  No.  313.  131 

of  seeing  whether  I  have  a  sufficient  sum  in  bank  to  pay  the  riovernmeiit 
all  the  money  I  have  ever  received,  ;uid  not  disbursed  according  to  law, 
for  the  use,  behoof,  or  benefit  of  the  Government. 

Question  2G.  Can  yon  or  not,  by  j^'onr  own  book  of  deposites  in  bank, 
ascertain  the  balance  which  you  iiave  had  in  bank  at  the  end  of  every 
week,  derived  from  payments  under  protests  ?  If  yea,  please  state  what 
such  weekly  balances  have  been  since  you  came  into  ofiice. 

Ansioei\  No.  The  amount  deposited  for  moneys  under  protest  is  made 
up  from  my  own  book,  and  upon  my  own  responsibility.  It  does  not  ap- 
pear daily,  weekly,  or  monthly,  by  the  book  of  deposites,  wliat  portion 
of  such  deposites  is  under  protest.  The  bank,  I  believe,  is  willing  to  take 
a  copy  of  my  return  to  the  Department  as  evidence  of  the  truth  of  the 
amount  of  money  received  and  deposited  under  protest.  When  it  expresses 
any  doubts  as  to  the  truth  of  the  statement,  they  will  notify  me,  and  I  will 
endeavor  to  satisfy  them  on  the  subject. 

Question  27.  Will  you  state  whatdistincticm  yon  make  between  "  your 
own  book  of  deposites  in  bank,"  as  you  have  understood  it  in  my  last  in- 
terrogatory, and  "your  own  book,"  to  which  you  allude  in  your  last  an- 
swer ? 

i^lnswer.  The  book  of  deposite  is  understood  to  mean  the  book  on  which 
the  bank  credits  the  amount  deposited  ;  or,  in  other  words,  it  would  be 
called  a  "pass-book"  between  the  dealer  and  the  bank;  or,  to  be  more 
specific,  it  is  a  book  in  which  the  bank  makes  an  acknowledgment  that 
the  individual  depositing  has  deposited  on  a  given  day  a  given  sum  of 
money.  The  person  depositing  does  not  keej)  what  he  calls  a  "book  of. 
deposites,"  but  he  does  or  not,  as  he  pleases,  make  a  charge  on  some  book 
p.gainst  the  bank  for  the  sum  deposited.  Some  keep  one  kind  of  book,  and 
some  another.  Some  enter  the  amount  of  deposite  on  the  margin  of  their 
check-book,  others  make  no  entry  at  all,  but  carry  the  amount  in  their 
memories.  I  debit  the  amount  of  deposite  on  the  margin  of  the  checl>- 
book ;  but  this  is  held  to  be  but  a  memorandum  for  the  person  drawing 
the  check,  as  to  the  amount  deposited.  I  do  not  keep  any  book  called 
my  "own  book  of  deposites  in  bank."  My  account  of  moneys  received 
under  protest  is  entered  as  it  is  received  in  what  is  called  the  protest- 
book.  Sometimes  more  or  less  entries  for  the  day  are  made  in  that  book, 
and  the  money  is  deposited  in  bank.  At  the  end  of  the  week  I  make  up, 
in  the  form  of  an  account,  the  gross  amount  deposited  for  the  week.  A 
copy  of  that  amount  I  forward  to  the  Treasurer  and  Secretary  of  the 
Treasury  on  Monday  of  each  week,  and  a  like  copy  leave  with  the  bank 
on  the  same  day.  The  book  of  protest  is  resorted  to,  and  not  the 
"  bank-book"  or  "book  of  deposites  in  bank,"  for  the  correctness  of  that 
account. 

Question  2S.  Canyon  or  not,  by  your  "protest-book,"  mentioned  in 
your  last  answer,  ascertain  the  balance  which  you  liave  had  in  bank  at 
the  end  of  every  week,  derived  from  payments  under  "  protest  ?  If  yea, 
please  state  what  such  weekly  balances  have  been  since  you  came  into 
office. 

^inswer.  I  can,  and  have  already  filed  that  account,  in  answer  to  a 
question  put  by  Mr.  Wise,  one  of  the  committee. 

The  indisposition  of  Mr.  lioyt  to  furnish  the  committee  with  full  in- 
formation on  the  subject  of  his  deposites  of  public  money  in  bank,  so  as 


132  Rep.  jN^o.  313. 

to  enable  it  to  understand  what  sums  had  been  drawn  out,  when,  and 
for  wliat  purposes,  as  well  as  what  sums  liad  been  deposited,  induced 
one  more  effort  on  the  following  morning  to  derive  the  hiibrmation  from 
his  deposite  banks;  accordingly,  on  the  next  morning,  at  the  opening  of 
the  session,  Mr.  Withers  was  sent  for,  appeared,  and,  in  the  presence  of 
Mr.  Hoyt,  was  examined  as  follows  : 

The  examination  oi  Mr.  Withers  was  resumed. 

Examined  by  Mr.  Smith. 

Question  4.  Have  you  had  any  consultation  or  other  intercourse  with 
Mr.  Hoyt,  the  collector,  since  you  were  summoned  as  a  witness  before 
this  committee,  on  the  subject  of  answering  interrogatories  relating  to  Mr. 
Hoyt's  deposites  in  your  bank  ?  If  yea,  state  the  substance  of  such  con- 
versation. 

^dnswer.  I  have  not. 

Question  5.  Has  the  board  of  directors  of  your  bank  been  consnlted  by 
yourself,  or  any  other  person  within  your  knowledge,  to  either  make  or 
prevent  a  disclosure  of  tlie  state  of  Mr.  Hoyt's  deposites  in  said  bank,  as 
sought  for  in  the  third  interrogatory  above  ? 

Answer.  The  board  of  directors  have  not  been  consulted,  to  my  knowl- 
edge, on  the  subject  of  Mr.  Hoyt's  account.  In  my  answer  to  the  third 
interrogatory  I  was  governed  by  the  by-laws  of  the  bank. 

When  the  last  answer  of  Mr.  Withers  was  given,  Mr.  Smith,  by  leave 
of  the  committee,  propounded  the  following  interrogatory  to  Mr.  Hoyt;  to 
which  the  latter  gave  the  answer  thereto  subjoined: 

The  examination  oi  Mr.  Hoyt  was  resumed. 

Examined  by  Mr.  Smith. 

Question  2,9.  Are  you  or  not  willing  for  the  cashiers  of  the  Bank  of 
the  State  of  New  York  and  of  the  City  Bank  to  furnish  this  committee 
with  a  statement  of  the  weekly  or  monthly  balances  of  your  deposites  in 
said  banks  since  your  term  of  office  as  collector  commenced  ?  If  nay, 
please  state  your  reasons  in  full. 

Jinswer.  From  an  occurrence  that  took  place  in  the  committee-room 
last  evening,  I  made  up  my  mind  that  it  was  necessary  to  make  a  com- 
munication in  writing  to  the  committee.  I  stated  to  the  committee,  be- 
fore I  commenced  this  answer,  what  I  desired,  and  that  the  letter  would 
be  before  the  committee  in  about  twomiiuites;  and,  since  conmiencing 
the  writing  of  this  answer,  said  connniuhcation  was  brought  to  the  com- 
mittee, and  handed  by  me  to  tlie  chairman  thereof;  and,  tnitil  an  answer 
is  made  to  that  communication  in  some  form  or  manner  to  indicate  to  me 
the  sense  of  the  committee  upon  the  same,  I  decline  answering  the  inter- 
rogatory. 


Rep.  No.  313.  133 

The  following  extract  from  the  journal  of  the  committee  exhibits 
the  continuation  of  the  committee's  proceedings  in  relation  to  ]\Ir.  Hoyt: 

Mr.  Sniith  olfered  the  following  resolution: 

III  consideration  that  Reuben  Withers,  Est].,  has  testified  to  this  com- 
mittee that  he  is  cashier  of  the  Bank  of  the  State  of  New  York,  and  has 
charge  of  the  books  of  records  and  accounts,  and  official  papers  of  said 
bank,  and  has  also  connnunicated  in  his  testimony  to  this  conmiittee  the 
copy  of  a  letter  from  Jesse  Hoyt,  Esq.,  collector  of  the  port  of  New  York, 
to  the  said  Withers,  in  his  said  capacity  as  cashier,  under  date  of  June  12, 
1S38,  informing  said  cashier  that  said  collector  had  deputed  said  bank  his 
"■agent  to  aid  him  in  safely  keeping  of  the  public  moneys  which  come 
inio  his  hands  by  virtue  of  the  office  he  holds :'''' 

And  in  consideration  that  said  Withers  has  declined,  when  called  upon 
for  the  purpose,  to  furnish  this  connnittee  with  information  of  the  aggre- 
gate weekly  balance  of  said  Hoyt's  deposites  in  said  bank  ''withouTthe 
autliority  of  the  board  of  ilirectors"  of  said  bank,  and  sulisequently  on 
the  ground  that  in  such  refusal  he  "was  governed  by  the  by-laws  of  the 
bank :" 

And  in  consideration  that  said  Hoyt  has  been  subsequently  asked,  by 
an  interrogatory  ])ropouuded  to  him  in  committee,  to  give  his  own  con- 
sent for  said  cashier  to  furnish  this  committee  with  the  information  thus 
sought  by  this  committee  respecting  the  public  money  deposited  by  said 
collector  in  said  bank  for  safe-keeping,  or  to  give  any  reason  satisfactory 
to  this  committee  for  withholding  such  consent  : 

Be  it  resolved,  That  the  chairman  of  this  committee  be  directed  to 
issue  a  siibpccna  duces  tecum,  summoning  said  Reuben  Withers  to  ap- 
pear forthwith  before  this  committee,  and  to  bring  -with  him  either  the 
original  l)Ook  of  the  deposite  account  of  Jesse  Hoyt,  kept  by  said  Withers 
as  cashier  of  the  liank  of  the  State  of  New  Y^ork,  or,  in  lieu  of  such  book, 
a  true  copy  of  said  Hoyt's  account  of  deposite,  as  the  same  appears  on 
the  books  of  said  bank,  since  the  1st  day  of  Warcli  last  past. 

Be  it  further  resolved,  That,  from  like  and  similar  considerations  as 
are  stated  above,  a  similar  subpcvjia  duces  tecum  be  issued  by  the  cJiair- 
inan  of  this  committee  to  Gorham  A.  Worth,  Esq.,  cashier  of  the  City 
Bank  in  the  city  of  New  Y'ork. 

Mr.  Foster  moved  to  amend  the  resolution,  by  striking  out  all  before 
the  words  "  Be  it  resolved,"  and  insert,  instead  thereof:  '•  Whereas  Mr. 
Hoyt  has  declined  to  answer  the  above  interrogatory,  except  as  above 
stated,  therefore." 

Mr.  Foster  called  for- the  yeas  and  nays,  and  the  amendment  was  re- 
jected : 

Yeas — Messrs.  Foster,  Owens,  Wagener — 3. 

Nays — Messrs.  Curtis,  Dawson,  Harlan,  Hopkins,  Smith,  Wise — G. 

The  question  was  then  put  on  Mr.  Smith's  resolution,  the  yeas  and 
nays  having  been  called  by  Mr.  Owens,  and  the  resolution  was  adopted: 

Yeas — Messrs.  Curtis,  Dawson, Foster,  Harlan,  Hopkins,  Owens,  Smith, 
Wagener,  Wise — U. 

Nays — None. 

Mr.  Owens  moved  that  the  writteti  commimication  of  Jesse  Hoyt,  col- 
lector, to  this  committee,  be  now  read. 

Mr.  Curtis  moved  the  following  amendment  to  Mr.  Owen's  proposition  • 

Resolved,  That  Mr.  Hoyt  be  informed  by  the  chairman  that  his  an- 


134  Rep.  No.  313. 

swer  to  the  last  interrogatory  propounded  by  Mr.  Smith  is  not  definitive 
to  the  question,  and  that  tlie  comuiittee  cannot  allow  him  to  dictate  the 
order  ot' their  proceedings,  or  the  terms  upon  which  he  will  respond  to  its 
inquiries;  and  that  if  said  answer  of  Mr.  Hoyt  be  retracted,  and  a  perti- 
nent answer  giv'en,  the  committee  will  receive  and  act  upon  his  written 
communicatioti,  and  not  before. 

Mr.  Owens  called  for  the  yeas  and  n;iys ;  and  the  amendment  was 
adopted: 

Yeas — Messrs.  Curtis,  Dawson,  Harlan,  Hopkins,  Smith,  Wise — 6. 

Nays — Messrs.  Foster,  Owens,  Wagener — 3. 

The  question  on  the  proposition  as  amended  was  then  })ut,and  decided 
in  the  ailirmative ;  the  yeas  and  nays  liaving  been  called  by  Mr.  Owens- 

Yeas — Messrs.  Curtis,  Dawson,  Harlan,  Hopkins,  Smith,  Wise — 6. 

Nays — Messrs.  Foster,  Owens,  Wtigener — 3. 

Mr.  Wise  offered  the  following  resolution: 

Resolved,  That  this  committee  will  not  receive  any  communications 
from  Mr.  Hoyt  until  he  answers  the  interrogatories  which  have  been 
propounded  lo  him. 

Mr.  Owens  called  for  the  yeas  and  nays,  and  the  resolution  was 
adopted: 

YK.^g — Messrs.  Curtis,  Dawson,  Harlan,  Hopkins,  Smith,  Wise — 6. 

Nays — Messrs.  Foster,  Owens,  VV'agener — 3. 

Reuben  IVithers  appeared  before  the  coniniittee  under  a  iubpcena 
duces  tecum,  issued  this  morning,  and  his  examination  was  resumed  by 
Mr.  Smith. 

Examination  of  M?-.  Withers  resumed. 

Examined  by  Mr.  Smith. 

Question  0.  Have  you  been  served  with  a  subpoena  from  this  com- 
mittee, directing  you  to  bring  the  books  of  the  Bank  of  the  State  of  New 
York  containing  the  account  of  the  deposites  made  in  said  bank  by  Jesse 
Hoyt  since  March  last,  or,  in  lieu  thereof,  to  bring  a  true  copy  of  such 
account?  If  yea,  do  you  produce  said  books  or  copy?  and  if  not,  please 
state  your  reason  for  omitting  so  to  do. 

^'Insiver.  I  have  been  served  with  a  notice  to  produce  the  books  of  the 
Baid{  of  the  State  of  New  York  relating  to  Mr.  Hoyt's  account,  or  a  copy 
thereof;  which  I  decline  producing,  for  reason  given  in  my  previous  an- 
swer. 

Mr.  Foster  called  up -for  consideration  tiie  resolution  offered  by  Mr, 
Hopkins  last  night,  for  adjonrnment  to  meet  in  Washington  city;  and 
moved  to  amend  if,  by  striking  out  all  after  the  word  "  Resolved,^''  and  in- 
serting the  tbllowing  : 

Whereas,  in  the  course  of  the  investigations  of  this  conimittec,  wit- 
nesses have  been  introduced  and  sworn,  whose  testimony  has  tended  to 
eharge  the  present  collector  of  the  port  of  New  York  wUh  ofiicial  mis- 
conduct: and  whereas  the  said  collector  has  applied  to  this  committee 
for  permission  to  be  heard  in  relation  thereto,  and  to  go  into  a  full  investiga- 
tion thereof,  by  witnesses  to  be  produced  by  him,  and  requesting  that  such 
full  investigation  may  be  had  here,  (in  the  city  of  New  York.)  where  he 
alle"-es  that  the  witnesses  which  he  wishes  to  introduce  reside:  and 
whereas  it  is  due  to  the  fair  and  full  administration  of  justice  that  the 


Rep.  No.  313.  135 

said  collector  should  have  a  lull  opportunity  to  rebut  the  charges  thus 
made  agahist  him  :  and  wliereas  several  witnesses  are  now  under  exami- 
nation before  this  committee,  the  testimony  ol"  whom  is  not  yet  cio.-ed  : 
and  whereas,  from  the  tact  that  several  witnesses  have  been  under  ex- 
amination at  the  same  time,  the  testimony  of  several  of  whom  is  not  now 
before  the  committee,  eitber  in  manuscript  or  in  print,  (a  portion  of  the 
manuscript  being  in  tbe  hands  of  the  printer.)  the  committee  have  not  at 
this  time  the  means  of  ascertaining  the  etfect  to  be  given  to  that  testi- 
mony, or  the  nature  thereof;  and  individual  mombers  of  the  committee 
are  consequently  unable  (until  a  belter  opportimity  shall  be  alforded  to 
examine  said  testimony)  to  determine  how  much  farther  the  examination 
of  those  witnesses  should  proceed,  or  what  other  witnesses  ought  to  be 
examined  in  this  case  in  order  to  a  lull  understanding  thereof:  and 
whereas  we  are  satisfied  that  a  full  investigation  of  the  tacts  connected 
with  the  defalcations  charged  can  be  better  examined  into  here  than  else- 
where :  therefore. 

Resolved,  Tiiat  this  comnnttee  will  not  fix  upon  a  time  for  closing?  the 
testimony  in  New  York  until  the  testimony  is  at  an  end  ;  and  that  the 
fixing  the  time  for  adjourning  to  Washington,  by  resolution  passed  before 
the  testimony  is  ended,  will  be  calculated  to  deprive  the  said  collector  of 
the  right  (winch  every  man  when  charged  has)  of  showing  that  those 
charges  are  unfounded,  and  of  protecting  his  character  from  asper- 
sion •,  will  preveiit  the  individuals  of  the  committee  from  examining 
and  cross-examining  such  witnesses  as  they  may  believe  ought  to  be  ex- 
amined ;  will  set  a  precedent  entirely  new  and  arbitrary  m  the  adminis- 
tration of  justice,  dangerous  to  the  rights  and  privileges  of  persons  who 
may  be  charged  with  misconduct  ;  will  be  decidin<r  a  question,  the  pro- 
priety of  which  the  committee  cannot  possibly  know;  and  will  be  well 
calculated  to  destroy  in  the  public  mind  all  confidence  in  tlie  results  to 
which  this  committee  may  anive. 

Resolved.,  That,  hereafter,  the  time  during  which  the  committee  wTil  be 
in  session  shall  be  from  ten  o'clock,  A.  iM.,  till  half-past  four,  P.  M.;  and 
from  seven  o'clock,  P.  M.,  till  half-past  ten,  P.  M. 

Mr.  Curtis  moved  to  lay  the  resolution  and  amendment  on  the  table. 

Mr.  Foster  called  for  the  yeas  and  nays,  and  the  motion  was  decided 
in  the  atiirmative : 

Veas — Messrs.  Curtis  Dawson,  Harlan,  Smith,  Wise — 3. 

Nays — Messrs.  Foster,  Hopkins,  Owens,  Wagener — 4. 

Mr.  Worth,  the  other  cashier,  did  not  obey  the  snbpa;na  issued  pursu- 
ant to  the  resolution  of  the  committee.  And  the  power  of  the  committee 
overlliG  witnesses  and  their  papers,  connected  with  Mr.  Hoyt's  accounts 
of  the  public  money,  being  thus  exhausted  in  the  pursuit  of  information 
deemed  essential  and  indispensable  to  the  formation  of  a  correct  judg- 
ment in  relation  to  his  returns,  and  the  certainty  that  the  late  period  in 
the  session  of  Congress  would  preclude  any  successful  appeal  from  the  com- 
mittee to  the  House  for  further  aid,  the  following  ivsolution  wa.s  offered 
by  Mr.  Wise,  at  the  close  of  the  morning  session  of  the  committee  during 
which  the  foregoing  proceedings  were  had,  viz  : 

Resolved,  That  this  committee  having  accomplisliod  its  principal  ob- 
ject, to  inspect  the  books  and  papers  in  the  custom-house,  in  coming  to 
the  city  of  New  York,  and,  desiring  to  insj)ect  the  books  and  papers  in 
the  Treasury  Departnient  at  the  city  of  Washington  during  the  short  pe- 


136  Rep.  No.  313. 

hod  of  time  now  left  to  the  turther  prosecution  of  its  inquiries,  v.ill  ad- 
journ tins  day  at  ten  o'clock,  P.  M.  to  meet  at  twelve  o'clock,  M.  ou 
Tuesday  the  12th  instant,  at  the  room  of  the  Committee  on  Commerce  in 
the  Capitoi ;  and  that  the  witnesses  licnceforth  he  summoned  to  appear  at 
that  place,  until  further  ordered. 

Mr.  Foster  moved  to  amend  the  resolution,  hy  striking  out  all  after  the 
word  "  Nesolvcd,"  and  inserting  the  tbllowing  : 

Whereas,  ill  the  course  of  the  investigations  of.  this  committee,  wit- 
nesses have  been  introduced  and  sworn,  whose  testimony  has  tended  to 
charge  the  present  collector  of  the  port  of  New  York  with  official  mis- 
conduct :  and  whereas  the  said  collector  has  applied  to  this  committee 
for  permission  to  be  heard  in  relation  thereto,  and  to  go  into  a  full  hives- 
tigation  thereof,  hy  witnesses  to  be  produced  by  him;  and  requestnig  that 
such  full  investigation  may  be  had  here,  (in  tlie  citj'-of  New  York,)  where 
lie  alleges  that  the  witnesses  which  he  wislics  to  introduce  reside  :  and 
whereas  it  is  due  to  the  full  and  fair  administration  of  justice  that  the  said 
collector  should  have  a  full  opportunity  to  rebut  the  charges  thus  made 
against  hiin :  and  whereas  several  witnesses  are  now  under  exami- 
nation before  this  committee,  the  testimony  of  whom  is  not  ^'"et  closed  : 
and  whereas,  from  the  fact  that  several  witnesses  have  been  under  ex- 
amination at  the  same  time,  the  testimony  of  several  of  whom  is  not 
now  before  the  committee,  either  in  manuscript  or  m  print,  (a  portion  of 
the  manuscript  being  in  the  hands  of  the  printer.)  the  committee  have  not 
at  this  time  the  means  of  ascertaining  the  effect  to  be  given  to  that  testi- 
mony, or  the  nature  thereof;  and  individual  members  of  the  committee  arc 
consequently  unable  (until  a  better  opportimity  shall  be  afforded  to  exam- 
itie  said  testimony)  to  determine  how  much  farther  the  examination  of  those 
witnesses  should  proceed,  or  what  other  witnesses  ought  to  be  examined 
in  this  case,  in  order  to  a  full  understanding  thereof:  and  whereas  wo 
are  satisfied  that  a  full  investigation  of  the  facts  connected  with  the  de- 
falcations charged  can  be  better  examined  into  here  than  elsewhere : 
therefore, 

Resolved,  That  this  committee  will  not  fix  upon  a  time  for  closing  the 
testimony  in  New  York,  until  the  testimony  is  at  an  end  ;  and  that  the 
fixing  the  time  for  adjourning  to  Washington,  by  a  resolution  passed  be- 
fore the  testimony  is  ended,  will  be  calculated  to  deprive  the  said  collector 
of  the  right  (which  every  man  when  charged  has)  of  showing  that  those 
charges  are  unfounded,  and  of  protecting  his  character  from  aspersion  ; 
will  jirevent  the  individuals  of  the  committee  from  examining  and  cross- 
examining  such  witnesses  as  they  may  believe  ought  to  be  examined  ; 
will  set  a  ])recedcnt  entirely  nev/  and  arbitrary  in  the  administration  of 
justice,  dangerous  to  the  rights  and  privileges  of  persons  who  may  be 
charged  with  misconduct ;  will  be  deciding  a  question,  the  propriety  of 
which  the  committee  cannot  possibly  know,  and  will  be  well  calculated  to 
destroy  in  the  public  mind  all  confidence  in  the  results  to  which  this  com- 
mittee may  arrive. 

Reisnlve'd,  That,  hercal'tor,  the  time  during  which  thc^  committee  will 
be  in  session,  shall  be  from  ten  o'clock,  A.  M.,  till  half-past  four  o'clock. 
P.  M.;  and  from  seven  o'clock,  P.  M.,  till  half-past  ten,  P.  M. 

Mr.  Foster  called  for  the  yeas  and  nays  on  the  amendment,  and  it  was 
decided  in  the  negative  : 

Yeas — Messrs.  Foster,  Owens— 2. 

Nays — Messrs.  Curtis,  Dawson,  Harlan,  Hopkins,  Smith,  Wise — 6, 


Bep.  No.  313.  137 

Mr.  Wagoner  moved  an  adjournment,  and  called  for  the  yeas  and  nays. 
Motion  lost : 

Yeas — Messrs.  Foster,  Hopkins,  Wagener — 3. 

Nays — Messrs.  Curtis,  Dawson,  Harlan,  Smith,  Wise — 5. 

The  question  was  then  taken  on  Mr.  Wise's  resolution,  and  decided  in 
the  affirmative  ;  the  yeas  and  nays  having  been  called  for  by  JMr.  Foster. 

Yeas — Messrs.  Curtis,  Dawson,  Harlan,  Hopkins,  Smith,  Wise — 6. 

Nays — Messrs,  Foster,  Wagener — 2. 

The  committee  then,  at  half-past  four  o'clock,  P.  M.,  look  a  recess  till 
seven  o'clock,  P.  M.,  to  meet  then  at  the  Astor  House. 

During  the  evening  session  of  the  committee,  and  not  forty  minutes 
previous  to  the  expiration  of  the  hour  appointed  by  the  resolution  of  the 
morning  for  the  adjournment  of  the  committee  to  meet  at  the  Capitol  in 
Waslungton,  the  chairman  received  and  submitted  two  letters  from  Mr. 
Hoyt. 

On  motion  of  Mr.  Owens, 
Resolved,  That  the  last  communication  from  Mr.  Hoyt,  collector,  be 
r.ead. 

Whereupon,  the  following  letters  were  read  : 

Friday  Evening,  7  o'clock, 

February  S    1839. 
Sir:  1  have  the  honor  to  enclose  you  a  communication  retracting  my 
former  answer  to  the  question  of  Mr.  Smith,  and  make  an  answer  to  the 
same. 

Respectfully, 

J.  HOYT,  Collector. 
Hon,  Jawi'.s  Harlan,  Chnirnxan. 

Friday  EvENiNG,_/'e6rwar^  8,  1839, 

7  o'clock,  P.  M. 

Sir:  If  I  correctly  understand  what  is  demanded  of  me  by  the  com- 
mittee of  which  you  are  chairman,  it  is  substantially  this:  that,  as  a  con- 
dition precedent  to  the  receiving  and  acthig  on  a  communication  addressed 
by  me  this  morning  to  the  committee,  and  placed  by  me  personally  in 
your  hands,  as  its  chairman,  at  1 1  o'clock  this  moruing,  1  must  retract  the 
answer  made  by  me  to  a  question  put  by  Mr,  Smith,  about  two  minutes 
before  that  communication  was  delivered  to  you,  (although  not  until  after 
it  was  written,)  which  question  was  in  the  following  words,  as  appears 
from  a  copy  there. >f  since  sent  to  me  by  the  committee: 

"Are  you  or  not  willing  for  the  cashiers  of  the  Bank  of  the  State  of 
New  York  and  of  the  City  Bank  to  furnish  this  conmiitlee  with  a  state- 
ment of  the  weekly  or  monthly  balances  of  your  deposites  in  said  banks, 
since  your  term  of  office  as  collector  commenced?  If  nay,  please  state 
your  rea.sons  in  full. ''  And  to  which  question  I  made  the  folio winganswer: 
"From  an  occurrence  that  took  place  in  the  committee-room  last  evening, 
1  made  up  my  mind  that  it  was  necessary  to  make  a  conuiumication  in 
writing  to  the  committee.  I  stated  to  the  committet^  before  I  commenced 
this  answer,  what  1  desired,and  that  the  letter  would  be  before  the  commit- 
tee in  a!)out  two  minute's.;  and  since  commencing  the  writing  of  this  answer, 
10 


138  Rep.  No.  313. 

she  said  commuuication  was  brought  to  the  committee,  and  handed  by  me 
to  tlie  chairman  thereof;  and  until  an  answer  is  made  to  that  communi- 
cation in  some  ibrm  or  manner,  to  indicate  to  me  the  sense  of  the  com- 
mittee upon  the  same,  I  decUne  answering  the  interrogatory." 

As  I  think  it  of  vital  importance  to  myself,  (and  not  only  to  me,  but  to 
truth  and  justice.)  that  the  communication  referred  to  should  be  received 
and  acted  on  by  the  committee;  and  as  I  am  reduced  by  the  course  which 
has  been  taken  by  the  committee  to  the  a  Iternative  either  of  withdraw- 
ing what  I  conceived  to  be  a  proper  answer,  under  the  extraordinary  cir- 
cumstances in  which  I  was  placed,  to  the  question  put  to  me,  or  of  sub- 
mitting to  the  rejection  of  my  communication  without  its  being  acted  on, 
read,  or  even  received:  I  feel  myself  compelled,  by  a  paramount  regard  to 
the  personal  and  public  interest  involved  in  this  case,  to  submit  to  the  di- 
rection of  the  committee,  and  1  do  therefore  hereby  withdraw  the  answer 
above  stated  to  have  been  given  to  the  question  of  Mr.  Smith.  But,  before  I 
proceed  to  answer  that  question,  I  think  it  proper  to  remind  the  commit- 
tee of  the  circumstances  under  which  it  was  given,  and  to  state  the  mo- 
tives M'hich  prompted  it,  to  the  end  that  the  object  and  propriety  of  the 
conrso  adopted  by  me  may  be  clearly  seen.  When  I  parted  from  the 
committee  at  half-past  1 1  o'clock  last  night,  I  informed  the  committee  that 
1  would  njake  a  communication  in  writing,  this  morning,  touching  Mr. 
Lyon's  testimony,  and  the  posture  in  which  it  placed  me  before  the  commit- 
tee; which  communication,  as  I  understood,  the  committee  agreed  to  re- 
ceive. In  conformity  with  this  understanding,  I  prepared  the  proposed 
communication  at  as  early  an  hour  as  practicable,  and,  as  above  stated,  de- 
livered it  to  you,  i)ersonally,  at  about  11  o'clock  this  morning. 

Being  exceedingly  desu'ous  that  this  communication  should  be  received, 
and  promptly  acted  on  by  the  committee,  for  reasons  which  will  readily 
appear  by  perusal  thereof;  and  being  unwilling  to  enter  upon  any  new 
subject  of  inquiry  until  1  should  be  distinctly  informed  by  the  committee, 
as  requested  in  that  communication,  what  were  the  charges  preferred 
against  me,  and  by  what  evidence  they  were  supported;  1  felt  it  to  be  my 
right  to  withhold  a  reply  to  the  new  question  proposed  by  Mr.  Smith,  es- 
pecially as  the  mode  of  trying  a  public  officer  by  compelling  him  to  fur- 
nish evidence  against  himself,to  which  I  had  patiently  submitted  for  several 
days,  seemed,  at  least,  to  deserve  this  modification.  I  was  also  induced  to 
take  the  com-sc  I  did,  by  the  fact  that  I  apprehended,  from  an  informal  con- 
versation had  with  the  committee  just  as  I  was  about  to  leave  the  com- 
mittee-room liisl  evening,  in  regard  to  the  time  I  should  require  to  dis- 
prove the  statements  of  Mr.  Lyon,  that  the  conmiittee  might  possibly  ad- 
journ before  I  could  have  the  opportunity  of  introducing  the  necessary 
testimony;  and  tiiis  was  the  occurrence  alluded  to  in  my  answer  to  the  in- 
terrogatory propounded  by  Mr.  Smith.  Proceeding  now  to  answer  that 
question,  I  reply,  that  I  am  perfectly  willing  that  the  cashiers  of  the  Bank 
of  the  State  of  New  York,  and  the  City  Bank,  siiould  render  you  any  and 
all  of  my  accounts  inquired  about  in  the  interrogatory,  in  any  form  or 
znannt^r  required  by  the  committee.  1  have  at  all  times  been  willing  that 
such  accounts  should  be  rendered.  1  have  not  requested  or  advised 
either  of  the  said  cashiers  to  withhold  them,  nor  have  I  any  wish  to  con- 
ceal or  supju'css  the  same;  but  I  am  desirous,  as  I  formerly  stated  in  my 
letter  to  the  committee,  under  date  of  tiie  29th  of  January  last,  to  liave  a 


Rep.  No.  313.  139 

full  investigation  of  my  accounts,  and  that  the  committee  miglit  state  to 
the  House  ol"  Representatives,  and  through  them  to  the  people,  whether 
or  not  I  am  a  public  defaulter. 

Very  respectfully,  your  obedient  servant, 

J.  nOYT,  Collector. 
Hon.  James  Harlan,  C/i(/i'ri?if/n,S,'C. 

Mr.  Owens  olfered  the  following  rcsoJutiou: 

Resolved,  That  Jesse  Hoyt,  the  collector,  be  furnished  with  a  copy  of 
the  printed  journal  of  this  committee,  so  far  as  the  same  has  relation  to 
charges,  direct  or  indirect,  against  him  as  collector. 

Mr.  Curtis  moved  to  amend  the  resolution  by  striking  out  all  after  the 
word  "resolved,"  and  inserting  the  following  words: 

That  Jesse  Hoyt  having  had  an  opportunity,  on  Wednesday  morning 
last,  to  read  the  testimony  of  David  S.  Lyon,  at  the  time  it  was  received, 
so  far  as  the  same  related  to  the  official  conduct  of  Mr.  Hoyt,  it  is  inex- 
pedient to  make  out  and  send  copies  of  any  testimony  taken  before  the 
committee  to  him. 

Mr.  Dawson  moved  to  lay  the  resolution  and  amendment  on  the  table 
till  Tuesday  next. 

Mr.  Owens  called  for  the  yeas  and  nays,  and  the  motion  was  carried: 

Yeas — Messrs.  Curtis,  Dawson,  Harlan,  Smith — 4. 

Nays — Messrs.  Foster,  Owens,  Wagener — 3.    , 

Mr.  Foster  ottered  a  resolution,  which  the  cliairman  decided  to  be  out 
of  order. 

Mr.  Foster  appealed  from  the  decision  of  the  Chair,  and  called  for  the 
yeas  and  nays. 

The  question.  Shall  the  decision  of  the  Chair  stand  ?  was  then  put,  and 
decided  in  the  affirmative  : 

Yeas— Messrs.  Curtis,  Dawson,  Harlan,  Hopkins,  Smith.  Wise — 6. 

Nays — Messrs.  Foster,  Owens,  Wagener — 3. 

Mr.  Foster  then  offered  a  second  resolution. 

The  Chair  decided  the  resolution  to  be  out  of  order. 

Mr.  Foster  appealed  from  the  decision  of  the  Chair,  and  called  for  the 
yeas  and  nays. 

The  question,  Shall  the  decision  of  the  Chair  stand  ?  was  put,  and  de- 
cided in  the  attirmative: 

Yeas— Messrs.  Curtis,  Dawson,  Harlan,  Hopkins,  Smith,  Wise — 6. 

Nays — Messrs.  Foster,  Owens,  Wagener — 3. 

Mr.  Hopkins  offered  the  following  resolution  : 

Reso/ved,  That  the  chairman  return  to  Mr.  .1.  Hoyt  his  communication 
of  this  morning,  which  was  received  about  1 1  o'clock. 

Mr.  Foster  moved  to  amend  the  resolution,  by  striking  out  all  after  the 
word  "resolved,"  and  inserting  the  following  words: 

That  the  chairman  now  present  to  the  committee,  and  that  the  com- 
inittee  receive,  the  communication  made  to  the  committee  at  about  eleven 
o'clock,  A.  M.,  this  day,  and  that  the  said  communication  be  now  read. 

Mr.  Owens  called  for  the  yeas  and  nays,  and  the  amendment  was  re-- 
jected  : 

Yeas — Messrs.  Foster,  Owens,  Wagener — 3. 

Nays— Messrs.  Curtis,  Dawson.  Harlan,  Hopkins,  Smith,  Wise — 6, 


140  Rep.  No.  313. 

The  question  was  then  put  on  the  original  resolution,  and  carried  in  the 
affirmative : 

Yeas — Messrs.  Curtis,  Harlan,  Hopkins,  Smith,  Wise — 5. 
Nays — Messrs.  Dawson,  Foster,  Owens,  Wagener — 4. 

The  committee,  having  thus  furnished  the  House  with  a  faithful  and 
connected  detail  from  the  record  of  the  })roccedings  of  the  committee,  in 
reliitioii  to  the  collector  at  New  York,  need  only  add,  that  the  repeated 
and  continued  evasions  of  the  calls  of  the  committee  upon  him,  hy  hoth 
resolutions  and  interrogatories,  for  information  respecting  his  oflioial  con- 
duct with  the  public  money,  and  of  his  accounts  of  that  money,  and  the 
constant  falsification  by  him  of  thq  professions  made  to  the  committee  in 
his  letter  of  the  29th  of  January,  of  Ids  anxietij  to  give  every  facility  to 
the  investigation  of  his  accounts,  and  unwillingness  tu  7'esl  for  a  mo- 
vient  u)ider  any  imputation  implied  by  a  previous  resolution  of  the 
committee,  and  of  his  readiness  to  submit  to  the  committee  all  his  offi- 
cial corrcsj)ondence  with  the  Treasury ,  and  his  books  and  papers  re- 
lating to  the  receipt  and  disbursement  of  the  public  money,  and  to  the 
particulars  and  s'tute  of  his  accounts  since  entering  upon  the  collector- 
ship,  and  also  that  it  would  give  hivi  pleasure  to  communicate,  either 
orally  or  in  writing,  any  other  information  on  the  subject  which  the 
committee  might  desire  ;  the  evasion  and  falsification  of  tliese  plain  pro- 
fessions and  assurances  whicli  he  had  made,  clearly  but  in  accordance  with 
the  duty  imposed  upon  him  by  his  station  ;  and  especially  Mr,  Hoyt's  neg- 
lect to  appear  in  person  to  enter  a  retraxit  of  his  previous  refusal  to  an- 
swer to  the  interrogatory  propounded  to  him  by  Mr.  Smith,  and  to  submit 
himself  to  further  examination,  ibrbade  tjie  conmiittec  to  indulge  any  con- 
fidence in  the  hope  of  a  successful  prosecution  of  their  inquiries  rcsjiecting 
his  otlicial  proceedings  within  the  short  lime  remaining  for  their  investi- 
gatioii.  The  committee  could  not  but  feel  that  already  too  much  time  had 
been  spent  in  endeavors  to  surmount  the  obstacles  and  equivocations 
which  had  been  thrown  in  their  way  by  the  ccjjector,  where  openness, 
directness,  and  plain  dealing  only  were  to  have  been  anticipated.  To  re- 
scind their  previous  resolution  for  their  return  to  Washington,  upon  any 
assurance  of  the  collector  of  a,  difl'erent  line  of  conduct  towards  the  com- 
mittee from  that  which  he  had  been  pursuing,  with  the  jirobability  thereby 
of  defeating  the  purposes  of  an  early  return  of  the  connnittee  to  Wash- 
ington, appeared  to  the  committee  not  to  be  warranted  by  a  sound  exercise 
of  discretion.  Equally  incompatible  with  the  time  and  duties  assigned 
tjiem  by  the  House  appeared  every  jnoposition  for  the  committee,  under 
ally  pretext  of  wounded  sensibility  on  the  })art  of  the  collector,  to  be  drawn 
aside  to  investigate  or  to  adjudicate  either  actual  or  fictitious  cliarges  of 
malconduct  that  nnght  be  brought  by  the  collector  against  any  individual 
who  had  preceded  him  in  the  custom-house,  but  who  was  not  any  longer 
an  officer  of  Government,  or  amenable  to  the  committee  or  to  the  House. 
At  the  stage  indicated  the  committee  were  therefore  compelled  to  abandon 
all  hoi)e  of  reporting  in  full  upon  the  correctness  of  the  returns  that  lutve 
been  made  by  this  officer. 

Revit;wing  the  evidence  obtained.  th<'  f^ommittcc  re)iort  to  the  House 
the  following  facts  as  established  : 

1st.  That  the  returns  of  the  collector  oi  the  custoiits  at  the  pori  of  New 
York  have  not  been  correct,  as  they  have  not  at  all  times  embraced,  as 


Rep.  No.  313.  141 

paid  into  llic  ])iil)lic  Treasury,  tlic  moneys  received  by  him  for  unascer- 
tained duties,  and  at  no  time  for  duties  paid  under  protest, 

2d.  Tiiat  said  collector,  in  his  returns,  has  violated  the  instructions  of 
the  Treasury  Department ;  has  put  at  defiance  the  duties  assigr.ed  him  by 
the  Secretary  of  the  Treasury :  has  repudiated  the  otRcial  decision  of  the 
responsible  law-ollicer  of  the  Executive  department;  and  is  guiltv  of  an 
illegal  retention  and  use  of  the  public  money,  in  the  amount  tlius  held  by 
him  luider  protest  and  for  unascertained  duties. 

3d.  That  the  committee  have  been  prevented  from  ascertaining  what  is 
the  extent  of  the  illegal  retention  and  use  of  the  public  moneys  by  the 
present  collector  of  the  port  of  New  York,  either  in  funds  collected  under 
protest,  or  for  unascertained  duties,  or  in  other  lunds  collected  by  hiin, 
because  of  his  refusal  to  exhibit  his  own  book  of  cash  drposites  in  bank, 
or  to  permit  the  l)anks  used  by  him  as  depositories  to  (ixhibit  their  ac- 
counts of  his  deposites. 

4th.  That  the  public  moneys  received  by  said  collector  are  mingled  with 
his  own  moneys  on  deposite,  and  are  not  kept  by  him,  nor  by  his  banks 
of  deposite,  distinct  and  separate  from  the  individual  moneys  of  the  col- 
lector, and  of  his  "•  professional  clients ;"  and  hivS  returns  cannot,  there- 
fore, be  founded  upon  them  as  a  separate  awd  independent  fund  belonging 
to  Government,  though  in  his  keeping. 

5th.  That,  as  appears  by  the  letter  of  Gorham  A.  Worth,  the  cashier 
of  the  City  Bank,  the  present  collector  has  deposited  public  moneys  in 
his  hands,  with  a  bank  which  could  not,  under  the  law  prohibiting  the 
selection  of  any  bank  as  a  depository  which  has  issued  notes  under  the 
denomination  of  five  dollars,  be  selected  by  the  Secretary  of  the  Treasury 
himself  as  a  depository  of  moneys  carried  to  the  credit  of  the  Treasurer 
of  the  United  States. 

6th.  That  the  mode  adopted  and  practised  by  the  said  collector,  of 
keeping  and  making  returns  of  the  public  money  collected^  by  him  for 
unascertained  duties  and  under  protest,  in  the  language  of  the  present 
Attorney  General  of  the  United  States,  "could  never  have  been  the  in- 
tention of  Congress ;"  and  being  "  tolerated,''''  it  has  made  it,  in  the  lan- 
guage of  the  same  high  officer,  "the  interest  of  the  collector  to  postpone 
the  ascertainment  of  duties,  as,  in  the  mean  time,  he  would  have  the  un- 
controlled use  of  the  money ;"  it  has  also,  in  fulfilment  of  the  reason- 
ing of  the  Attorney  General,  incy^eased  the  "danger  of  faithlessness  in 
the  collector,  by  permitting  large  amounts  of  money  to  remaiti  with  him, 
and  under  his  individual  control,  instead  of  being  in  the  Treasury  of  the 
United  States." 

7th.  That,  in  the  language  of  the  Attorney  General,  "  the  tenor  and 
spirit  of  all  our  revemic  laws  seem  to  inculcate  the  idea  that  the  inten- 
tion of  Congress  has  at  all  times  been,  that  money  collected  for  revenue 
should  be  promptly  placed  in  the  Treasury,  and  not  be  permitted  to  re- 
main in  the  hands  of  the  collector." 

8th.  That  the  returns  of  the  naval  ofllcer  at  New  York  have  not  been 
correct,  as  it  is  found,  in  the  testimony  of  the  present  deputy  naval  otfi- 
cer,  "  that  the  naval  office,  under  its  existing  system,  is  not  enabled  either 
to  determine  what  amount  of  bonds  has  been  taken  by  the  collector  for 
duties  in  any  quarter,  or'  who  are  the  parties  to  said  bonds,  or  the 
dates  of  said  bonds,  or  when  they  are  payable,  or  when  such  bonds  are 
paid,  or  whether  the  collector  does  or  does  not  account  truly  for  such 
bonds." 


142  Rep.  No.  313. 


PART  IV. 

DEFALCATION  AMONG  RECEIVERS  OF  PUBLIC  MONEYS. 

The  committee,  in  fulfilment  of  that  portion  of  the  duty  assigned  them 
by  which  they  were  directed  to  inquire  into  "any  del'alcations  among 
receivers,"  &c.  "  wliich  may  now  exist,"  report  to  the  House  that  the 
limited  period  which  they  had  for  a  thorough  investigation  of  the  subjects 
with  wliich  they  were  charged,  and  the  time  necessarily  consumed  in  the 
examination  of  the  cases  of  the  late  collector  and  district  attorney  of  New 
York,  liave  prevented  a  minute  investigation  of  the  extent,  nature,  and 
causes  of  the  defalcations  of  receivers  of  public  moneys,  arising  from  the 
sales  of  the  public  lands.  The  committee  liave,  however,  prepared,  from 
reports  made  by  the  Secretary  of  the  Treasury,  at  the  last  and  present  ses- 
sions of  Congress,  a  tabular  statement  exhibiting  the  names  of  such  de- 
faulters, the  amount  due  from  each,  when  due,  and  the  penalties  of  their 
official  bonds,  respectively  ;  also,  the  correspondence  had  between  the 
Treasury  Deijartment  and  fifteen  of  the  individuids  whose  names  appear 
in  said  statement.  Tiie  committee  having  called  for  and  been  furnished 
by  the  Department  with  the  answers  of  the  receivers  to  the  letters  of  the 
Secretary  of  the  Treasury,  as  contained  in  House  document  No.  297,, 
tliese  fifteen  cases  are  reported  specially  as  examples  merely  of  the 
manner  in  which  the  President  of  the  United  Stqites  and  tlie  Secretary  of 
the  Treasury  have  executed  the  laws  in  respect  to  the  public  money,  and 
other  property  of  the  United  States,  in  the  hands  of  this  class  of  public 
officers,  and  in  respect  to  their  own  official  duty, 

Tlie  law  provides  for  the  appointment  by  the  Executive,  with  the  con- 
currence of  the  Senate,  of  a  receiver  of  public  moneys  at  each  of  the 
places,  respectively,  where  the  public  and  private  sales  of  the  lands  are  to 
be  made,  who  shall  give  bond,  with  approved  security,  for  the  faithful 
discharge  of  his  trust;  who  shall  transmit  within  thirty  days  in  case 
of  public  sale,  and  quarterly  in  case  of  private  sale,  an  account  of  all  the 
public  moneys  by  him  received  to  the  Secretary  of  the  Treasury,  and  to 
the  register  of  the  land  office,  as  the  case  may  be.  He  is  allowed  a 
salary  of  five  hundred  dollars  per  annum,  and  a  commission  of  one  per 
centum  on  the  moneys  received;  but  his  salary  for  anyone  year  shall 
not  exceed  $3,000.  The  Secretary  of  the  Treasury  may  allow  to  the 
several  rcciMVcrs  of  the  public  moneys  at  the  several  land  oflices  a  rea- 
sonable compensation  for  transporting  to,  and  depositing  such  moneys  m 
any  bank  or  any  other  place  of  deposite  that  may,  from  time  to  time,  be 
desiij^nated  by  the  Secretary  of  the  Treasury  for  tliat  piu'pose.  He  is  also 
authorized  to  pyrscrilie  such  farther  regnlations,  in  the  manner  of  keep- 
ing books  and  accoimls  by  the  several  officers  in  the  land  offices,  as  to 
Aim  may  appear  necessary  and  proper.  It  is  made  his  duty,  at  least 
once  in  every  year,  to  cause  the  books  of  the  officers  of  the  land  oflices  to 
bjfi  examined,  and  the  balance  of  public  moneys  in  the  hands  of  the  sev- 
eral receivers  to  be  ascertained. 

Tlie  foregoing  synopsis  of  the  law  relative  to  land  receivers,  and  th& 


Rep.  No.  313. 


143 


correspondence  with  a  portion  of  those  who  imve  proved  defauUers  and 
faithless  to  their  trusts,  are  submitted  without  further  connnent  thnn  that 
the  facts  and  circumstances  here  exhibited  show  such  a  dereliction  of  duty, 
on  the  part  of  the  Executive  Department,  as  calls  loudly  for  soarchina:  ex- 
amination into  this  branch  of  the  public  service,  and  for  a  tliorou2:li  re- 
form. 

The  practice  which  the  foregoing  correspondence  exhibits,  of  retainirHg 
men  in  office  after  gross  and  repeated  violations  of  law,  in  keeping  and 
using  the  public  moneys  for  private  speculation,  and  the  character  of  the 
correspondence  itself,  but  too  clearly  point  to  the  inference  that  such  offi- 
cers were  retained  in  place  because  they  possessed  extensive  political  in- 
fluence, and  were  useful  and  active  partisans. 

Whether  such  mal-administration  constitutes  otHcial  corruption  in  those 
superior  officers  of  the  Executive  Departments  who  knew  of  and  permitted 
in  their  subordinates  the  conduct  which  has  been  referred  to,  is  a  questioa 
which  the  committee  submit  to  the  House  and  the  country  to  decide. 

1. — Siaiemeni  exhibiting'  the  balances  due  by  7'eceivers  of  public  moneys 
arising  from  the  sales  of  public  lands,  who  were  out  of  office  the  \2tk 
October,  1837,  as  extracted  from  the  report  of  the  Secretary  of  the 
Treasury,  (document  111,^  dated  \5th  January,  1838,  and  as  cor- 
rected, as  regards  the  true  amount  due,  by  the  report  of  the  same 
officer  dated  2Gth  January,  1839,  (document  122,  //,  R.J 


o  c 

Receivers. 

Land  district. 

Amount  due. 

When  due. 

§.2 
a,   o 

o 

1 

Peter  Wilson 

Steubenville  - 

$9,348 

87 

23  Jan.     1821 

?  15, 000 

2 

Samuel  Stokelj 

Do. 

146 

87 

7  Feb.     1837 

15,000 

3 

Samuel  Finley 

Chillicothe    - 

24,779 

34 

13  Nov.    1818 

io,ooe 

4 

Bernaicl  Van  Home  - 

Zanesville 

35 

50 

24  Aug.    1836 

20,000 

5 

Nathaniel  Ewing 

Vincennes     - 

5,967 

32 

9  Oct.     1819 

io,ooa 

6 

J.  C.  S.  Harrison 

Do.           - 

9,253 

08 

2  June,  1 829 

40,000 

7 

Charles  M.  Taylor     - 

Jeffersonville 

1,627 

97 

14  June,   1824 

3o,ooa 

8 

A.  P.  Hay    - 

Do. 

5,046 

72 

18  April,  1829 

30,000 

9 

Israel  T.  Canby 

Crawford-sville 

39,013 

31 

31  Dec.     1834 

30,00G 

10 

Lazarus  Noble 

Indianapolis  - 

4 

93 

4  April,  1836 

10,009 

]1 

Abner  McCarty 

Do. 

1,338 

92 

18  July,    1836 

60,000 

12 

Benjrtuiin  Stephenson 

Edwardsville 

6,460 

41 

10  Oct.      1822 

1.5,000 

13 

Samuel  D.  Lockwootl 

Do. 

572 

36 

21  April,  1826 

15,000 

15 

B.  F.  Edwards 

Do.          - 

3,315 

76 

20  May,    1837 

15,000 

16 

Wm.  LeeD.  Ewing  - 

V^andalia 

16,754 

29 

9  April,  1830 

20,  OW 

18 

George  F.  Strother    - 

St.    Louis 

27,051 

64 

24  Dec.     1 824 

40,000 

19 

Samuel  Hammond     - 

Do. 

21,574 

44 

13  Jan.     1820 

20 

Bernard  Pralte 

Do. 

168 

86 

28  Jan.     1836 

30,00(.* 

21 

Tunstall  Quarles 

Jackson 

1,060 

95 

30  Juntt,   1824 

10,000 

22 

John  Hays     - 

Do. 

1,3S6 

16 

31  Dec.     1834 

20,000 

23 

Wm.  D.  McRay 

Lexington 

9,877 

23 

30  Nov.    1S25 

24 

Willis  M.  Green 

Palmyra 

2,312 

12 

31  Dec.     1835 

.30,000 

25 

Ben.  S.  Chambers 

Little  Rock    - 

2,Hfi 

27 

4  Aug.    1836 

10,000 

26 

Wm.  Garrard 

Opelousas 

27,230 

57 

18  April,  1821 

10,000 

27 

Luke  Tjecassier 

Do. 

6,893 

95 

7  .Mav,    1823 

10,000 

28 

David  L.  Todd 

Do. 

1,121 

98 

11  Apnl,  1832 

10,000 

29 

Benj.  R.  Rodgcrs 

Do. 

6,624 

83 

25  Mav,    1837 

20,ooa 

]44 


Rep.  No.  313. 

STATEMENT— Coiitinuec!. 


« 

'^'i 

Receivers. 

Land  district. 

Amount  due. 

When  due. 

n.2 

30 

Nathaniel  ('ox 

New  Orleans 

$4,163 

56 

31  Mar. 

18ii9 

$l5,00^) 

31 

Jas.  J.  McLanahan    - 

Do. 

593 

99 

10  Sept. 

1830 

10,000 

32 

Maurice  Cannon 

Do. 

1,259 

28 

30  June, 

1836 

20,000 

33 

Alex.  G.  Penn 

St.  Helena    - 

165 

84 

7  July, 

18.35 

1.5,000 

34 

A.  W.  McJ^anicl       - 

Washington,  Miss.     - 

6,000 

00 

6  Oct. 

1830 

20,000 

35 

James  Duncan 

Do. 

55-72 

30  June, 

1830 

20,000 

36 

Thomas  Lewis 

Do. 

347 

26 

31  Dec. 

1834 

20,000 

37 

Wni.  Barnett 

Augusta 

107 

85 

9  Sept. 

1820 

10,000 

38 

George  B.  Dameron  - 

Do. 

285 

37 

31  Dec. 

1834 

15,000 

39 

Hanson  ■'Vlsbury    ,    - 

Do. 

131 

30 

31  Dec. 

834 

1.^000 

40 

Samuel  Smith 

St.  Stephen's 

33,590 

92 

25  May, 

1817 

10,000 

41 

George  Conway 

Do. 

5,G13 

00 

16  Sept. 

1827 

40,000 

42 

John  H.  Owen 

Do. 

30,611 

97 

1  Nov. 

1836 

40,000 

43 

James  C.  Dickson 

Choctaw 

548 

61 

30  Sept. 

1836 

30,000 

44 

Geo.  B.  Crutcher 

Do. 

6,061 

40 

31  Mar. 

18.32 

30,000 

45 

Geo.  B.  Dameron 

Do. 

.38,714 

81 

1  April, 

1834 

30,000 

Do.      - 

Choctaw  school  fund  - 

344 

83 

1  April, 

1834 

46 

Samuel  W.  Dickson  - 

Choctaw 

11,231 

90 

16  Sept. 

1837 

G0,000 

47 

Do.      - 

Choctaw  school  fund  - 

898 

53 

16  Sept. 

1837 

48 

Wiley  P.  Harris 

Columbus 

109,178 

08 

16  Nov. 

1836 

30,000 

49 

John  Brahan 

Huntsville     - 

18,712 

49 

22  .May, 

1820 

50 

Leroy     Pope,    trustee 

of  John  Brahan    - 

Huntsville     - 

38,133 

22 

20  July, 

831 

51 

John  Taylor 

Cahaba 

11,115 

20 

12  July, 

1821 

40,000 

52 

William  Taylor 

Do. 

23, 1 1 6 

18 

30  June, 

1836 

40,000 

53 

H.  (r.  Perry 

Do. 

6,074 

81 

16  Feb. 

827 

40,000 

54 

Uriah  G.  Mitchell 

Do. 

54,626 

55 

28  Feb. 

1837 

40,000 

55 

John  Herbert 

SparTa 

2,444 

24 

30  Sept. 

827 

40,000 

56 

A.  T.  Perry 

Do. 

28,155 

57 

28  May,    1 

828 

20,000 

57 

R.  K.  Call    - 

Tallahassee    - 

9,385 

30 

31  Dec. 

1836 

40,000 

60 

James  W.  Stephenson 

Galena,  Illinois 

43,294 

04 

5  May, 

837 

30,000 

61 

Littleberry   Hawkins 

Helena 

100,000 

00 

9  Nov. 

835 

20,000 

62 

S.  W.  Beall 

Green  Bay     - 

10,620 

19 

30  June,  1 

837 

20,000 

63 

Jos.  Friend    - 

Washita,  Louisiana  - 

2,.'>51 

91 

15  May,    1 

835 

15,000 

64 

Wm.  H.  Allen 

St.  Augustine 

1,997 

50 

27  Oct.     ] 

836 

20,000 

65 

Gordon  D.  Boyd 

Columbus 

50,937 

29 

31  Aug. 

837 

200,000 

66 

R    H.  .Sterling 

Chocchuma  - 

10,733 

70 

28  Feb.     1 

837 

30,000 

Rep.  No.  313. 


145 


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146  Rep.  No.  313. 

Paris  Childress,  late  receiver  at  Greensburg,  Louisiana. — Suit  ordered 
March  29,  1838,  for  §12,449  76.  The  circuit  court  at  New  Orleans  for 
May  term,  1838,  adjourned  sine  rfie,  and  without  transacting  business; 
the  suit,  therefore,  is  still  pending. 

John  H.  Owen,  late  receiver  at  St.  Stephen's,  Alabama. — Suit  ordered 
January  15, 1838,  for  S30,611  99  ;  suit  is  still  pending,  the  district  attorney 
having  called  for  separate  statements  showing  the  amount  of  the  default 
due  under  each  of  the  four  dilferent  bonds  given  by  Mr.  Owen,  which 
have  not  yet  been  received  from  the  Comptroller. 

William  Linn,  late  receiver  at  Vandalia,  Illinois. — Suit  ordered  March 
1.9,  1838,  for  680,551  76;  balance  reduced  in  June,  1838,  to  ^55,962  06. 
Suit  continued  at  December  term,  1838,  on  an  order  of  court  requiring 
production  of  the  original  bond  in  this  case;  and,  also,  for  a  statement  of 
Mr.  Linn's  account  in  detail. 

Samuel  T.  Scott,  late  receiver  at  Jackson,  Mississippi. — Suit  ordered 
March  22,  1838,  for  ^11,295  51:  judgment  at  May  term,  1838,  against 
principal  and  sureties  for  Si  1,595  84.  In  the  district  attorney's  report, 
he  states  that  Mr.  Scott  made  no  defence,  although  he  had  some  small 
assets.  The  marshal,  by  letter  dated  November  30,  1838,  advised  that 
Mr.  Scott  made  a  payment  to  him  of  upwards  of  ^1,700,  of  which  he 
made  a  deposite  of  ^1,344  43  to  the  credit  of  the  Treasurer  of  the  Uni- 
ted States,  and  retained  the  balance  to  pay  costs.  He  further  advised 
that,  as  the  banks  of  Mississippi  would  resume  .specie  payments  in  a  short 
time,  he  presumed  Mr.  Scott  would  pay  the  whole  amount  by  the  next 
term  of  the  United  States  court. 

James  T.  Pollock,  late  receiver  at  Grawfordsville,  Indiana. — Distress 
warrant  issued  in  this  case  April  28,  1838,  for  i?40,498  87.  Sundry  pay- 
ments have  been  made  by  Mr.  Pollock,  which  have  reduced  the  United 
States  claim  against  him  to  the  sum  of  Sl4,891  98,  per  Treasury  report 
No.  3913.  An  authenticated  transcript  of  the  last  settlement  transmitted 
to  the  marshal  of  Indiana  November  27,  1838,  that  he  might  proceed  for 
the  balance  still  due;  but  his  report  since  then  has  not  been  received. 

John  L.  Daniel,  late  receiver  at  Opelousas,  Louisiana. — Suit  ordered 
August  3,  1838,  for  g7,280  63.  District  attorney's  report  of  proceedings 
thereon  not  yet  received. 

Morgan  Neville,  late  receiver  at  Cincinnati,  Ohio. — Suit  ordered  De- 
cember 21,  1838,  for  iS  13,781  19,  but  no  report  thereon  yet  received  from 
the  district  attorney. 

M.  J.  Allen,  late  receiver  at  Tallahassee,  Florida. — Suit  ordered  Janu- 
ary 5,  1839,  for  ^26,691  57;  balance  reduced  January  16,  1839,  to 
^25,068  72,  but  no  report  thereon  yet  received  from  the  district  attorney. 

Offick  of  the  Solicitor  of  the  Treasury, 

January  26,  1839. 


Ren.  No.  313.  147 


COKKESPONDENCE  BETWEEN  THE  SECRETARY  OF  THE  TREASURY  ANI> 
CERTAIN  RECEIVERS  OF  PUBLIC  MONEY. 


2. — Coi'res])onde7ice  with  H.  H.  Sterling,  r^eiver  at  Chocchuma. 

Receiver's  Office, 

Chocchuma,  fMi,ss.J  November  2Q,  1833. 

Sir  :  I  liave  the  honor  to  acknowledge  the  receipt  ol'  your  letter  dated 
on  the  8tli  ultimo,  authorizing  me  to  receive,  in  payment  for  public  lands^ 
the  bills  of  the  specie-paying  banks  of  Louisiana,  Mississippi,  Tennessee, 
and  Alabama. 

The  public  sales  were  well  attended,  and  the  press  of  private  entries  af- 
ter the  sales  closed  was  immense.  At  ibis  time  I  cannot  say  to  you  the 
amount  of  the  sales,  but  I  think  they  are  not  much  short  of  $300,000. 

The  labors  of  the  oflice,  from  the  moment  the  sales  conmienced,  have 
been  very  severe — so  much  so,  that  the  register  and  myself  have  scarcely 
slept  for  many  nights  in  succession;  and,  under  these  considerations,  I 
trust  that  you  will  allow  us  clerk-hire  for  at  least  a  clerk  apiece  during 
the  sales,  and  after  that  period  for  one  clerk,  which  would  enable  us  to  get 
along. 

I  will  leave  here  in  a  short  time  for  the  purpose  of  making  a  deposite 
9X  Natchez,  and  return  here  before  the  1st  of  January,  so  as  to  make  out 
my  quarterly  account  up  to  that  time. 

I  am,  verv  respectfully,  your  obedient  servant, 

R.  H.  STERLING, /?ecm'er. 

Hon.  R.  B.  Taney, 

Secretary  of  the  Treasury,  Washington. 


•Treasury  Department,  January  16,  183,4. 
Sir  :  I  have  received  your  letter  of  the  26th  November  last,  and  have 
looked  with  some  anxiety  for  further  advice  as  to  the  disposition  of  the 
money  in  your  possession,  arising  from  the  recent  public  sales  in  your 
district.  Returns  from  the  bank  of  deposite  to  the  24th  ultimo  contain  no 
jevidence  of  any  credit  to  the  Treasurer  by  you  ;  and  as,  from  your  letter, 
there  was  reason  to  expect  the  public  money  would  not  be  retained  be- 
yond that  period,  I  am  tlie  more  concerned  at  the  omission.  Under  these 
circumstances,  it  becomes  my  duty  to  require  that  you  will  proceed  to  de- 
posite the  whole  amount  of  pubhc  money  in  your  hands  forthwith,  in  case 
it  has  not  been  already  deposited,  I  will  only  further  add,  that  the  obli- 
gations to  deposite  the  public  money  promptly,  and  to  render  your  returns 
and  accounts  punctually,  are  imperative,  and  must,  in  future,  be  regarded 
as  paramount  to  all  other  duties. 

I  am,  &.C. 

R.  B.  TANEY, 
Secretary  of  the  Treasury. 
R.  H.  Sterling,  Chocchuma, 

Receiver  of  Public  Money. 


148  Rep.  No.  313. 

Treasury  Department, /VA/'Mrtri/  7,  1834. 
Sir  :  It  has  been  represented  to  this  Department  that  some  of  the  re- 
ceivers of  pubUc  money  in  Mississippi  have  been  engaged  in  trading  on 
the  bank  notes  they  receive  in  payment  of  pubHc  lands,  by  exchanging 
them  for  bank  notes  of  inferior  vakie.  I  hope  that  there  may  be  some 
mistake  in  this  business,  as  it  is  my  duty  to  state  to  yon  that  such  conduct 
would  be  regarded  by  this  Department  as  a  gross  violation  of.  official  duty, 
and  be  treated  accordingly.  But,  as  such  a  statement  has  been  made  from 
the  most  respectable  authority,  I  must  ask  whether  you  have  engaged  in 
any  such  use  of  the  public  money  received  by  you,  and  request  a  prompt 
answer  to  this  inquiry. 

I  am,  &c. 

R.  B.  TANEY, 
Secretary  of  the  Treasury. 
To  the  Receivers  op  Public.  Money 

at  Jlugusta,,  Mount  Sains,  IVaslungton, 

Chocchiima,  and  Columbus. 


Receiver's  Office,  N.  W.  District, 

Chocchuma,  (Miss.)  Jipril  16,  1834. 

Sir  :  I  have  not,  until  this  day,  received  your  letter  of  the  7th  Februa- 
ry ultimo,  in  reference  to  receivers  of  the  several  land  offices  in  this 
State  trading  in  bank  notes ;  and  I  embrace  the  earliest  opportunity  of 
communicating  to  you  an  answer  to  your  inquiry,  as  far  as  concerns  my- 
self. 

I  occasionally,  to  accommodate  persons  who  call  upon  me  for  that  pur- 
pose, have  given  them  in  exchange  bank  paper  for  notes  of  other  banks, 
but  I  have  not,  except  in  one  solitary  instance,  given,  or  received  in  ex- 
change, bank  paper  of  any  description,  but  such  as  I  have  received  in- 
structions from  the  Treasury  Department  to  receive  for  public  lands. 

I  proceed  now  to  state  the  circumstances  attending  the  case  referred  to 
above.  During  the  land  sales,  the  honorable  John  Bell,  at  this  time  a 
Representative  in  Congress  from  Tennessee,  in(iuired  of  me  if  I  felt  author- 
ized to  receive,  in  payment  of  lands,  the  paper  of  Yeatman,  Woods,&  Co., 
and  that  of  the  Union  Bank  of  Tennessee.  I  informed  him  I  did  not 
feel  so  authorized;  but  as  I  felt  perfectly  satisfied  of  the  soundness  of  the 
banking-house  of  Yeatman,  Woods,  &  Co.,  and  the  Union  Bank  also,  as 
well  as  a  disposition  to  oblige  him,  I  would  take  time  to  reflect  upon  the 
subject,  and  advise  with  my  friends  touching  the  matter.  The  result  of 
my  consultations  with  the  nnitual  friends  of  Air.  Bell  and  myself',  induced 
me  to  receive  the  paper  ollerod  by  that  gentleman  at  a  small  discount, 
with  an  assurance  from  him  that  he  held  himself  responsible  to  me  for 
any  loss  that  might  accrue  on  the  paper  received  from  him,  should  the 
bank  of  deposite  refuse  to  receive  the  saine  on  account  of  the  Govern- 
ment. 

Subsequently,  I  offered  that  paper  to  the  Planters'  liank,  which  was 
readily  placed  to  the  credit  of  ihe  Treasurer  of  the  United  States  at  par. 

I  beg  leave  further  to  state,  that,  up  to  this  date,  wll  the  money  I  have 
offered  to  the  Planters'  Bank  for  deposite  has  been  received  and  placed  to 


Rep.  No.  313.  149 

the  credit  of  the  Treasurer  of  the  United  States.  I  should  be  pleased  if 
a  cornmuiiicatiou  be  addressed  to  the  cashier  of  the  Planters'  Bank  by 
the  Secretary  of  the  Treasury  upon  the  subject,  as  I  feel  confident  an  im- 
mediate and  satisfactory  answer  would  bo  given  to  any  inquiries  made  of 
him. 

1  have  the  pleasure  to  state  to  you,  that,  out  of  about  ^350,000  depos- 
ited, 1  liave  not  received  one  dollar  of  counterfeit  niont^y — a  heavy  re- 
sponsibility, that  1  very  much  apprehended  might  ruin  me,  as  there  was 
considerable  spurious  money  olFered  during  the  public  sales,  particularly 
on  the  United  States  15ank  and  its  branches;  and  that,  too,  at  a  time 
when  I  was  very  much  hurried  in  the  discharge  of  my  official  duties. 

In  my  instructions  from  the  Treasury  Department,  I  find  nothing  dis- 
approving my  conduct  as  above  stated  ;  however,  should  it  not  meet  the 
views  of  the  Secretary  of  the  Treasury,  1  hope  to  receive  timely  notice 
of  it. 

Respectfully,  I  am,  sir,  your  most  obedient  servant, 

R.  II.  HTER] A^G,  Receiver. 

Hon.  R.  Ji.  Taney, 

Secretary  of  tke  Treasury,  IVushingtun  city. 

P.  S. — For  your  satisfaction,  I  beg  leave  to  refer  you  to  the  honorable 
Messrs.  John  'Bell  and  David  W.  Dickinson,  members  of  tlic  House  of 
Representatives,  who  will,  doubtless,  corroborate  the  foregoing  statement 
should  you  judge  it  necessary  to  call  on  ihem. 


Treasury  Departmknt, 

March  25,  1834. 
SiE  :  The  Department  having  received  no  monthly  returns,  exhibiting 
the  transactions  of  your  office  from  ics  establishment,  it  is  proper  to  call 
your  immediate  attention  to  this  duty,. and  to  say  to  you  that  a  strict 
compliance  with  this  duty  will  be  insisted  on  ;  and  that,  to  enforce  its 
due  performance,  the  Department  will  not  hesitate  to  report  the  omission, 
for  the  action  of  the  Executive. 

1  am,  &LC. 

R.  B.  TANEY, 
R.   H.  Sterling,  Esq.,  Secretary  of  the  Trcusvry. 

Receiver  of  Public  Money,  Ctiocchuma. 


.Receiver's  Office,  N.  W.  District, 
Chocchuma,  May  10,  1834. 

Sir:  I  herewith  enclose  you  my  monthly  account,  showing  a  balance 
of  ten  thousund  and  fourteen  dollars  and  filty  cents,  (Sl0,014  50.) 

Some  time  since,  1  transniiited  to  you  this  account,  which  showed  the 
balance  to  be  ^10,014  39,  which  is  short  by  eleven  cents  of  the  actual 
balance.  The  account  here  enclosed  you  will  please  receive,  and  return 
the  other  one  to  me. 

1  am,  very  respectfully,  your  obedient  servant, 

R.  H.  STERLING,  Receiver. 
Hon.  R.  B.  Taney, 

Secretary  of  the  Treasury,  fVashivgton  city. 


150  Rep.  No.  313. 

Treasury  Department, 

MuT/  19,  1S34. 
Sir  :  Lest  the  letter  of  which  the  enclosed  is  a  dupHcate  may  have 
miscarried,  I  have  thought  it  proper  to  transmit  a  copy,  and  again  to  call 
your  attention  to  its  requirements. 

I  am,  &c. 

R.  B.  TANEY, 
Secrehi/y  of  the  Treasury. 
Receivers  of  Public  Money, 

Augusta,  Mount  Salus,  Cohimbus,  Chocchuma. 


Receiver's  Office,  N.  W.  District, 

Chocchuma,  {Miss.,)  June  18,  1834. 
Sir  :  I  have  this  day  received  yours  of  the  19th  ultimo,  covering  a  copy 
of  your  letter  to  me  of  25th  March ;  in  answer  to  which,  I  have  the  honor 
to  inform  you  that  some  time  previous  to  the  receipt  of  the  latter,  (received 
April  30th,)  1  had  transmitted  all  my  monthly  accounts  up  to  that  time  to 
the  Treasury  Department,  and  also  duplicates  of  the  same  to  the  General 
Land  Office  ;  and  in  the  event  of  their  having  been  lost,  I  now  enclose 
copies  of  them  to  you. 

I  am,  very  respectfully,  your  obedient  servant, 

R.  H.  STERLING,  Receiver. 
Hon.  R.  B.  Taney, 

Secretary  of  the  Treasury,  Washington  city. 

P.  S. — Tiie  vouchers  and  account?  explanatory  of  the  charges  in  the 
accounts,  have  been  forwarded  to  the  General  Land  Office  with  my  quar- 
terly accounts. 


Treasury  Department,  January  21,  1835. 
Sir  :  Your  letter  of  the  10th  of  February  last,  transmitting  an  account 
for  certain  advances  and  services,  was  duly  received,  and  referred  to  the 
Commissioner  of  the  General  Land  Office ;  a  like  disposition  has  been 
made  of  the  copies  of  that  letter  and  accounts  received  through  the  hands 
of  the  honorable  F.  E.  Plummer.  1  would  observe,  in  reference  to  the 
subject,  that  all  such  claims  should  be  charged  in  the  quarterly  accounts 
rendered  by  you  to  the  accounting  officer  for  settlement,  to  whom  it 
properly  belongs  to  admit  or  reject  them,  as  the  law  or  usage  of  the  De- 
partment may  authorize. 


I  am,  &c. 


R.  H.  Sterling,  Esq., 

Receiver  of  Public  Money,  Chocchuma,  Miss 


LEVI  WOODBURY, 

Secretary  of  the  Treasury. 


Rep.  No.  313.         "  151 

CIRCULAR. 

Treasury  Department,  February  28,  1835. 

Sir  :  It  luis  been  intimated  to  the  Department  that  a  practice  prevails 
at  some  of  the  land  oflices,  of"  permitting  entries  and  issuing  certificates 
of  purchase,  without  the  payment  of  the  purchase-money  at  the  tinje  of 
the  entry.  Such  a  practice  being  unauthorized,  and  highly  reprehensible, 
I  have  deemed  it  proper  to  make  known  to  you,  that  if  it  has  been  tol- 
erated by  you,  it  must  immediately  cease  ;  and  any  repetition  of  it  here- 
after, coming  to  the  knowledge  of  the  Department,  will  receive  prompt 
and  exemplary  notice. 

I  cannot  omit  the  occasion  to  impress  upon  you  the  necessity  of  a  strict 
attention  to,  and  punctual  compliance  with,  the  duties  required  of  you  in 
regard  to  the  prompt  deposite  of  the  public  moneys,  and  transmission  of 
your  accounts  and  returns ;  and  to  say  to  you  that  the  performance  of 
those  duties  must  be  regarded  as  paramount  to  all  other  in  your  official 
station. 

I  am,  &c. 

LEVI  WOODBURY, 

Secretary  of  the  Treastiry. 
To  Receivers  of  Public  Money  at  Cahaha,  HuntsviUe,  Montgomery, 

St.  Stephen'' s,  Augusta,  Chocchuma,  Neiv  Orleans,  Ouachita,  Deniopo- 

lis,  Mardisville,  Sparta,  Tuscaloosa,  Columbus,  Washington,  Opelou- 

sas,  and  St.  Helena. 


Treasury  Department,  March  17,  1835. 
Sir:  Having  received  no  monthly  duplicate  return  of  the  transactions 
of  your  office  since  that  for  the  month  of  October  last,  it  becomes  my  un- 
pleasant duty  to  call  your  immediate  attention  to  the  omission.  Allow  me 
to  express  a  hope  that  there  may  be  no  further  occasion  to  remind  you  of 
the  importance  of  punctuality  in  the  transmission  of  these  returns. 

I  am,  &c. 

LEVI  WOODBURY, 

Secretary  of  the  Th^easury. 
To  Receivers  of  Public  Money  : 

W^.  P.  Harris,  Columbus,  Mississippi. 
R.  H.  Sterling,  Chocchuma,     do. 
B,  R.  RoDGERs,  Opelousas,  Louisiana. 

,  IJemopolis,  Alabama. 

[November  for  October  to  the  two  last  named.] 

P.  S. — To  the  receiver  at  Opelousas :  Having  received  no  evidence  of 
your  compliance  with  the  requirements  of  my  letter  of  the  1st  November 
last,  I  take  occasion  to  apprize  you  that,  unless  you  exhibit  satisfactory 
evidence  of  your  having  deposited  the  whole  of  the  public  money  in 
your  hands  at  the  time  of  such  deposite,  on  or  before  the  1st  of  April 
next,  I  shall  be  under  the  disagreeable  necessity,  in  the  discharge  of  my 
duty,  to  report  your  neglect  for  the  action  of  the  Executive. 


152  Rep.  No.  313. 

Rkceiver's  Office,  N.  W.  District, 

Chocchuma,  {Mus.,)  Jlpril  22,  1835. 

Sill :  On  this  day  1  relumed  from  Natchez,  where  I  had  been  for  the 
purpose  of  making  a  deposite,  and  found  in  my  office  your  letter  of  the 
17th  ultimo,  notifying  me  that  none  of  my  monthly  accounts  had  been 
received  since  that  of  November  last.  It  is  true  that  some  time  had  elapsed 
after  tlie  accounts  for  December  and  January  were  due,  before  they  were 
despatched,  because  I  left  here  in  the  latter  part  of  December  for  Natchez, 
to  make  a'deposite ;  I  did  not  get  back  until  late  in  January,  and  then  it 
took  me  some  time  to  prepare  them  for  transmission,  and  I  hope  they 
have  all  safely  arrived  ere  this  ;  but,  if  they  have  not,  I  am  prepared  to 
prove  that  they  were  sent  in  due  form,  and  can  furnish  copies  of  them  at 
a  moment's  warning. 

There  is  no  receiver  in  this  State  that  has  the  difficulties  which  I  have 
to  encounter,  in  performing  the  duty  of  making  deposites.  At  Columbus, 
there  is  a  branch  of  the  Planters'  Bank,  in  which  the  receiver  makes  his 
deposites;  1  have  to  travel  a  distance  of  two  hundred  and  thirty  miles, 
partly  through  a  newly -settled  country,  where  the  accommodations  are 
wretched,  and  worse  roads  than  you  have  any  idea  of:  there  are  but  few 
creeks  bridged,  and  frequently  swimming,  particularly  at  this  season  of 
the  year.  Since  my  appointment  to  this  otfice,  I  have  done  but  little  else 
than  to  use  my  best  exertions  to  discharge  the  duties  required  of  me,  and 
will  continue  to  do  so. 

I  am,  very  respectfully,  your  obedient  servant, 

R.  H.  STERLING,  Receiver. 

Hon.  Lkvi  WooDBrRY, 

Secre/a?y  of  the  Treasury,  Washington  city, 

P.  S. — There  have  frequently,  during  the  past  winter  and  sprhig,  several 
weeks  at  a  time  passed  oil  without  the  arrival  or  departure  of  a  mail  from 
this  place  ;  and,  under  such  circumstances,  it  could  not  be  expected  that 
my  accounts,  admitting  that  they  were  mailed  the  moment  they  were 
due,  could  arrive  in  season.  At  this  time,  the  tributaries  of  the  Yazoo 
are  very  high ;  consequently  we  have  had  no  mail  from  the  North  for 
near  two  weeks.  My  return  and  account  current  for  the  month  of  March 
are  now  waiting  for  the  departure  of  the  first  Northern  mail.  It  is  with 
this  country  as  with  all  new-sottled  regions — the  people  must  first  build 
their  houses  and  clc^ir  their  lands,  and  then  open  the  roads ;  I  think  that 
twelve  months  to  come  will  put  the  roads  in  a  situation  so  as  to  ensure 
the  regular  transportation  of  the  mail. 

Very  respectfully, 

R.   H.  S. 

Note. — Duplicates  of  my  monthly  accounts  were  transmitted  to  the 
General  Land  Office  at  the  sarne  time  that  the  originals  were  despatclied 
to  the  Treasury  Department ;  and  I  have  received  no  advice  of  their  not 
havin?  reached  there. 


Treasury  Department,  February  4,  1S36. 
Sir  :  Your  returns  for  the  months  of  October^  November,  and  Decem- 
ber, have  not  been  received.     I  I'cirrct  that  tliere  should  be  any  occasion 


Rep.  No.  31.3.  153 

to  notice  the  neglect  or  accident,  as  the  case  may  be,  in  this  important 
duty ;  and  avail  myself  of  the  occasion  to  inform  you,  that  unless  your 
future  returns  are  received  at  the  Depariment  within  the  month  next  suc- 
ceeding that  for  which  the  return  is  rendered,  it  will  place  me  under  the 
disagreeable  necessity  of  re{)orting  the  fact  to  the  Executive,  in  order  to 
comply  with  the  general  rule  in  tfiis  class  of  cases. 

I  am,  &c. 

LEVI  WOODBURY, 

Secretary  of  the  Treasuri/. 

To  Receiveus  at  Palmyra,  Missouri,  October,  November,  and  Decem- 
ber;  Edwards I'ille,  Illinois,  November  and  December ;  Quincy,  Illi- 
nois, November  and  December;  Shawneetoion,  Illinois,  October, 
November,  and  December ;  Cahaba,  Alabama,  November  and  Decem- 
ber; St.  Stephen's,  Jilabuma,  November  and  December ;  CohtmbuSj 
Mississippi,  November  and  December ;  'Mount  Salus,  Mississippi, 
xVovember  and  December;  Helena,  Arkansas,  December ;  Washing- 
ton^ Arkansas,  December ;  Zanesvitle,  Ohio,  December ;  Vincennes, 
Indiana,  December ;  Chicago,  Illinois,  December ;  Galena,  Illinois^ 
December:  Vandalia,  Illinois,  December;  Tuscaloosa,  Alabama, 
December;  Augusta,  Mississippi,  December ;  Chocchuma,  Missis- 
sippi, December;  New  Orleans,  On  ichita,and  St.  Helena,  Louisiana, 
December;  Green  Bay,  Michigan,  December;  Batesville,  Arkansas, 
December. 


Receiver's  Office,  N.  W.  District, 

Chocchuma,  (Miss.,)  March  7,  1836. 
Sir  :  I  have  the  honor  to  acknowledge  die  receipt  of  your  letter  un'der 
date  of  the  4th  ultimo,  on  the  subject  of  my  "returns"  for  the  month  of 
December  last.  In  answer  to  which,  I  assure  you  that  my  returns  for  that 
month ;  my  monthly  account  for  the  same  ;  my  account  current  for  the 
fourth  quarter  of  1835  ;  my  returns  and  monthly  account  for  January  last, 
were  all  sent  off';  but,  I  admit,  not  so  sjon  as  I  wished,  owing  to  my  ab- 
sence in  making  deposites,  which  occupied  about  fifteen  days  of  my  time, 
viz  :  from  the  23d  of  December  to  the  7di  of  January.  I  think  it  very 
probable  that  my  returns  are  frequently  delayed  on  the  route  between  here 
and  Washington  ;  and,  if  so,  it  would  be  injustice  to  hold  me  accountable  ; 
and  in  future  I  intend  to  take  the  postmaster's  certificate  of  the  time  that 
ray  returns,  &c.  are  deposited  in  the  post  office. 
I  am,  very  respectfully,  your  obedient  servant, 

R.  H.  STERLING,  Receiver. 
Hon.  Levi  W^oodbury, 

Secretary  of  the  Treasury,  JVashington  city. 


Treasury  Department,  Jtily  6,  1836. 
Sir  :  I  have  to  request  your  explanation  of  the  complaint  made  in  the 
enclosed  copy  of  a  letter  addressed  to  the  Department  by  John  Caperton, 
iu  which  he  alleges  that  you  refused  to  receive,  in  payment  of  public  lands, 
11 


154  Rep.  No.  313. 

a  Sso  note  on  the  Bank  of  Virginia,  unless  he  first  paid  you  ^2  discount 
on  the  same. 

I  am.  &c. 

LEVI  WOODBURY, 
Secretary  of  the  Treasury. 
Keceiver  of  Public  Money, 

Chocchuma,  Mississippi. 


Receivek's  Office,  N.  W.  District, 

Chocchiima,  f  Miss., J  July  30,  1836. 

Sir  :  Your  letter  of  the  6th  instant,  on  the  suhject  of  John  Caperton's 
eomplaint,  hasheen  received.  He  applied  on  the  13th  of  June  last  to  enter 
an  eighty-acre  tract  of  land,  and  ofl'ered,  in  part  payment  for  it,  a  twenty- 
dollar  note  on  the  Bank  ol"  Virginia,  which  is  not  receivable,  as  will  ap- 
pear by  a  copy  of  a  letter  lierewith  enclosed  from  the  cashier  of  the  depos- 
ite  bank  for  this  State. 

I  informed  ^Ir.  Caperton  that  such  money  was  not  receivable  for  the 
public  land,  and  not  current  in  the  country.  He  insisted  on  my  taking  it. 
1  told  him  that  I  could  not  do  so  at  par,  inasmuch  as  I  could  not  offer  it  at 
the  depositc  bank  in  the  face  of  instruchons  ;  but  advised  him  to  go  out 
amongst  the  merchants  and  other  persons  in  the  place,  and  get  it  changed 
031  the  best  terms  he  could.  He  did  so,  but  could  not  succeed,  and  re- 
turned to  my  office,  saying  that  it  would  subject  lum  to  much  inconveni- 
ence if  I  did  not  take  it.  I  then  told  him  that  I  would  not  take  a  small 
note  on  my  own  account  on  a  distant  bank,  for  less  than  10  per  cent,  dis- 
count ;  he  readily  agreed  to  allow  it,  and  expressed  his  thanks  for  the  fa- 
yor,  which  I  thought  was  the  last  of  the  subject ;  and  I  consider  it  very 
mean  and  niggardly  in  him,  afler  the  favor  which  I  extended,  to  present 
me  at  the  Treasury  Department  as  a  petty  shaver. 

I  am,  very  respectfully,  your  obedient  servant, 

R.  H.  STERLING,  Receiver. 

Hon., Levi  Woophurv, 

Secretary  of  the  Treasury. 


[R.  H.  Sterling  stands  indebted  to  the  Government  the  sum  often  thou- 
aand  seven  hundred  and  thirty-three  dollarsand  seventy cents,(J^10,733  70.) 
See  preceding  statement  of  balances.] 


3.. —  Correspondence  with  J.  T.  Pollock,  receiver  at  Craufordsville. 

Land  Office, 
Craufordsinlk,  {Indiana,)  December  21,  1833. 

vSir:  The  circular  of  your  predecessor  (Mr.  McLane)  of  the  12(h  April 
fast,  has  been  received  some  time  since.  I  have  to  state  that,  agreeably 
to  the  instructions  contained  in  it,  there  is  but  a  small  share  of  duty  rest- 
ing upon  me,  not  having  been  an  officer  of  the  Government  until  a  short 


Hep.  No.  313.  155 

time  before  the  conflagration  occurred  ;  but  all  the  letters  and  communi- 
cations of  my  predecessors,  addn.'ssed  to  the  Secretary  of  the  Treasury, 
as  well  as  those  written  by  him,  being  in  my  possession,  I  have  deemed 
it  necessary,  iu  order  that  his  request  may  be  fulfilled,  to  copy  them,  as 
well  as  those  written  by  myself  and  those  addressed  to  nie  by  the  Secretary 
of  the  Treasury.  I  have  procured  an  additional  clerk  lor  that  purpose. 
The  work  is  iu  operation,  and  will  be  completed  in  a  short  time. 

To  comply  with  tlic  last  clause  of  his  instructions,  I  have  herewith  en- 
closed the  date  and  object  of  some  circula7\s  written  by  the  Secretary  of 
the  Treasury,  that  the  wishes  of  the  Department  on  these  subjects  maybe 
ascertained. 

Very  respectfullv,  sir,  your  obedient  servant, 

JAMES  T.  POLLOCK,  Receiver. 

Hon.  R.  B.  Tankv, 

Seci^ctary  of  (he  Treasury. 


TuEASuijv  Depaiitment,  March  14,  1837. 
Sir:  Complaint  has  been  made  to  the  Department  that  your  family  do 
not  reside  at  the  place  where  your  otfice  is  located.     It  will  be  necessary 
that  you  should  reside  at  the  place  where  the  land  office  is  kept,  in  order 
to  give  due  attention  to  its  business,  and  ensure  public  satisfaction. 
I  am,  &c., 

LEVI  WOODBURY, 

Secretary  of  t lie  Treasury. 
James  T.  Pollock,  Esq., 

Receiver  of  Public  Money,  Craufordsviik,  Indiana. 


Land  Office,  Crawforsdville,  ,]pril  13,  1S37. 

Sir  :  In  answer  to  your  commmiication  of  the  14th  of  March,  I  have 
to  say,  that  for  more  tJian  two  years  while  my  family  resided  at  this  place, 
the  physician  was  our  daily  and  nightly  visiter  ;  that  iny  oldest  daughter, 
fifteen  years  of  age,  died  ;  that  our  infant  died  for  us  likewise;  that  our 
only  surviving  daughter  had  four  several  and  severe  ottacksof  fever ;  that 
my  wife  was,  during  the  above-named  period,  so  sorely  diseased  and  atllict- 
ed  that  I  was  advised  by  medical  men  here  to  take  her  where  lier  health 
could  be  restored;  that  all  our  other  children,  being  three  in  number,  were 
torn  to  pieces  by  fevers  and  agues;  that  I  never  intended  otherwise  tlian  to 
return  my  family  to  this  place  as  soon  as  my  wife's  health  and  the  state  of  the 
roads  will  allow  me  to  do  so  ;  that  I  reside  here  myself,  as  I  am  not  absent 
only  when  I  have  leave,  or  making  my  depositc  ;  and  that  I  am  now,  and 
always  have  been,  disposed  to  give  particular  attention  to  business  in- 
trusted to  me.  The  complainant,  of  whom  you  speak,  knows  these  facts, 
or  he  knows  nothing  at  all  of  my  business.  In  conclusion,  sir,  I  am  con- 
scious I  have  done  nothing  but  what  would  have  been  done  by  any  man 
who  has  any  regard  to  the  liresand  comforts  of  those  Heaven  hath  placed 
under  his  particular  guardianship. 

Yours  with  respect, 

JAMES  T.  POLLOCK,  Receiver. 

Hon.  Levi  Woodbury, 

Secretary  of  the  Trem.niry. 


156  Rep.  No.  313. 

Treasury  Department, 

November  11,  1837. 
Sir:  Your  monthly  return  lor  tlie  montli  of  August  last  has  not  been 
received ;  and  you  are  requested  to  transmit  a  duplicate  thereof  without 

delay- 

I  am,  &c. 

LEVI  WOODBURY, 

Secretary  of  the  Treasury. 

[The  above  circular  was  addressed  to  the  Receivers  at  Quincy,  Illinois; 
Fayette,  Jackson,  and  Lexington,  Mississippi;  Green  Bay  and  Monroe^ 
W\c\\\gdi\\,  July  and  ^^ligust ;  Mineral  Point,  Michigan;  Crawfordsville, 
\\\di\Q.nx\.,  Septeynher ;  Galena,  Illinois,  September  ;  Fayctteville,  Arkan- 
sas, September ;  Tallahassee,  Florida,  September.^ 


Treasury   Department, 

January  9,  1838. 
Sir:  The  complaint  of  your  non-residence  at  the  site  of  the  land  office 
having  been  renevv^ed,  it  becomes  my  duty  again  to  call  your  attention  to 
this  matter,  and  to  ask  such  explanations  as  you  maj^  be  able  to  give  for 
your  supposed  continued  violation  of  the  regulation  requiring  you  to  re- 
side at  Crawfordsville. 

I  am,  &c. 

LEVI  WOODBURY, 

Secretary  of  the  Treasury. 
Receiver  of  Public  Money, 

Crawfordsville,  Indiana. 


Treasury  Department, 

February  22,  1838. 
Sir:  It  appearing  from  your  last  return  that  the  public  money  has  ac- 
cumulated in  your  hands  to  the  sum  of  ^54,089,  although  you  have  been 
directed  to  deposite  the  same  on  the  6lli  of  November  last,  and  on  the  26th 
iiltimo  ;  and  as  no  explanation  of  your  neglect  has  been  received,  I  have 
to  require  the  sales  to  be  suspended  until  the  money  in  your  hands  shall 
be  deposited  as  directed.  According  to  your  last  return,  the  balance  in 
your  hands  was  ^54,089.  Deducting  from  this  sum  ^  15,084  for  outstand- 
ing warrants  drawn  upon  you  by  the  Treasurer,  and  there  would  remain 
the  sum  of  ^39,005  subject  to  deposite.  Referring  also  to  the  cliarge  of 
non-residenco  at  the  land  office,  communicated  in  my  letter  of  the  9th 
January  last,  to  which  no  answer  has  been  received,  I  will  only  add,  that^ 
if  no  satisfactory  answer  to  the  subjects  of  this  letter  be  soon  received,  I 
must  lay  all  the  fact*  before  the  President  for  his  final  decision. 

I  am,  &c. 

LEVI  WOODBURY, 

Secretary  of  t fie  Treasury. 
Receiver  op  Public  Money, 

Craufordsville,  Indiana. 


Rej).   No.  313.  157 

-•■^  P.  S.  I  trust  that  the  deposite  of  the  balance  will  be  made  at  Louis- 
ville, (if  not  done  already  under  my  previous  directions,)  without  a  day's 
delay. 


Tkkasury  Department, 

\ipril  14,  1838. 

Sir:  Having  received  no  evidence  of  your  having  deposited  the  public 
moneys  which  have  come  to  your  hands,  and  the  balance  appearing  to  be 
due  exceeding  ^30,000,  I  have  thought  it  proper,  before  resorting  to  any 
measure  of  harshness,  again  to  call  your  immediate  attention  to  the  sub- 
ject, and  to  express  a  hope  that  you  will  be  enabled  to  furnish  satisfactory 
evidence,  by  return  of  mail,  that  you  have  deposited  all  the  moneys  with 
which  you  are  chargeable,  as  heretofore  directed. 

I  am,  very  respectfully,  your  obedient  servant, 

•   LEVI  WOODBURY, 

Secretary  of  the  Treasury. 
James  T.  Pollock,  Esq. 

Crawfordsvillc ,  Indiana. 


Dearborn  County,  May  3,  1838. 

Sir:  A  gentleman  residing  in  Crawfordsvillc,  and  in  whose  care  are  the 
moneys  (or  at  least  part  of  them,  the  other  part  being  left  in  the  bank  at 
Indianapolis)  for  the  drafts  on  me,  (Ogden's,)  has  this  day  informed  me 
of  your  communication  in  relation  to  my  business,  dated  the  14th  of  the 
past  month.  In  answering  this,  I  must  tell  of  matters  which  I  did  not  in- 
tend to  name,  and  of  matters  which  a  part  of  my  earnings  must  go  to  ac- 
count for.  x\nd  what  arc  they  ?  The  register,  Mr.  Tyler,  has,  time  out 
of  mind,  been  practising  on  the  people  a  course  of  business,  to  suit  his 
own  convenience,  at  my  expense;  and  this  has  been  the  way  it  was  done. 
When,  as  I  suppose,  it  was  coyivenient  for  the  register  to  want  money, 
and  an  applicant  presented  himself  in  his  otRce,  ten  to  one  but  there  was 
some  difiiculty  between  the  person  wanting  Jand,  and  the  plats  and  num- 
bers, &c.,  which  would  be  an  inducement  for  him  to  leave  his  money,  with 
the  assurance  that  his  duplicate  would  be  forwarded  to  him  by  mail  in  a 
short  time,  and,  in  the  mean  time,  no  other  person  should  have  his  land. 
In  this  way  the  Lord  only  knows  how  much  money  has  been  deposited 
with  Mr.  Tyler;  and  it  was  none  of  my  business  if  the  entire  wealth  of  the 
world  had  been  left  with  him,  so  as  I  should  not  have  felt  any  thing  of 
his  ingenuity.  Pnit  so  it  was ;  the  time  would  come  when  the  fellow  who 
had  deposited  the  money  would  get  uneasy  about  his  duplicate,  and  bear 
down  on  the  old  fellow  for  the  same  ;  the  next  thing  then  was  to  come  to 
me,  to  have  die  amount  charged  to  Tyler;  and  I  have,  for  the  sake  of 
peace,  granted  him  accommodation  (relying  greatly  on  his  word  that  he 
would  pay  the  same  when  wanted)  to  a  considcraljle  amount,  and  fully 
intended  to  keep  the  matter  within  myself;  and  siiould  have  done  so,  had 
not  yours  of  the  14th  been  received.  These  are  sent  in  to  be  proven  by 
how  many  evidences,  shall  I  say  ?  It  is  not  necessiry  to  enumerate  them; 
they  can  be  made  very  many j as  I  have  ail  the  numbers  recorded  in  a 


158  Ecp,  No.  313. 

memorandum-book.  And  again,  in  my  absence,  a  month  or  two  ago^ 
from  Crawlbrdsvillc,  tbere  was  one  thousand  dollars  let  go  out  of  the  office^ 
for  accommodation  sake,  by  a  man  in  n)y  charge,  that  should  not  have 
gone  had  I  been  there  ;  this,  with  Mr.  Tyler's  money,  I  then  had  to  gather 
from  my  own  resources,  which  I  did  gather  several  weeks  ago,  and  took 
to  Louisville,  with  other  moneys,  expecting  to  get  silver  for  it,  and  have 
the  whole  affair  settled;  and,  behold,  when  I  got  there,  there  was  not  a 
dollar  in  market,  for  high  or  low  prtmium;  but  I  had  assurances  that  it 
would  be  kept  for  me  on  my  return,  which  will  be  to-morrow.  In  the 
mean  while  I  deposited  motleys  in  the  Savings  Institution,  intending  to 
take  but  one  receipt  on  the  final  amount  being  placed  there.  If  you  doubt 
my  having  moneys  in  that  institution,  will  you  please  to  write  the  treas- 
urer as  to  the  facts  ?  As  to  the  Ogden  money,  I  have  requested  the  bank 
at  Terre  Haute  to  go  to  Crawfordsville  and  Indianapolis  and  get  it,  until  I 
am  tired  out,  and  sliall  give  them  another  pressing  notice  tliis  day  to  go 
and  get  tireir  money.  I  cannot  fo;ce  them  to  go  and  get  their  money ; 
and  I  have  written  to  them  and  urged  them  to  it  until  I  am  tired  out.  In 
short,  sir,  if  they  do  not  go  and  get  their  money,  I  shall  take  it  to  the  Sa- 
vings Institution  at  Louisville,  as  I  am  determined  to  have  no  more  noise 
about  it.  These  are  the  reasons  why  the  amount  I  liave  received  has  not 
been  accounted  for  before  this.  And,  in  conclusion,  the  remark  you  made 
''before  resorting  to  any  measure  of  harshness,"  has  given  me  an  assu- 
rance that  you  have  studied  the  maxim  that  a  gentle  hand  will  lead  an 
elephant  with  a  hair.  These  very  few  thousand  dollars  that  I  have  above 
alluded  to  I  am  bound  for,  although  friend  Tyler's  account  to  me,  unless 
he  pays  it,  will  be  laid  before  you  as  Secretary  of  tlie  Treasury  of  the 
United  States;  and  if  you  will  only  reflect  a  moment  that  the  men  whose 
names  are  on  my  oflicial  bonds  are  worth  in  cash  not  less  than  one  hundred 
and  fifty  thousand  dollars,  you  will  say,  at  once,  it  never  will  be  necessary 
to  resort  to  any  harsh  measures  whatever.  One  word  more  about  the  Ogden 
drafts.  I  was  certain,  when  I  left  Crawfordsville,  that  the  bank  at  Terre 
Haute,  which  held  those  drafts,  would  call  and  have  them  settled;  and  it 
was  only  a  week  ago  that  I  was  told  that  they  (the  bank)  had  not  been 
heard  from ;  and  I  must  again  repeat,  that  all  the  moneys  I  owe  the  Gov- 
ernment will  be  j)aid  instantly  by  me,  without  any  difficulty  whatever. 
My  residence  is  in  Dearborn  county;  the  most  convenient  post  office  to 
me  is  Murray's  mills,  where  you  will  please  direct  your  communications 
to  me,  if  you  should  have  any;  while 

I  shall  remain  vour  obedient  servant, 

JAMES  T.  POLLOCK. 
Hon.  Levi  Woodiu^ry, 

Secretary  of  the  Treasury. 


[  UnoJJicial.'] 

Receiver's  Office, 
Crawfordsville ^  (Indiana,)  May  4,  1S38. 
Sir:  Your  favor  of  the  14l[i  ultimo  came  to  hand  the  21st  ultimo.    Col- 
onel Pollock  left  here  the  3d  day  of  March  to  deposite  public  moneys  at 
Louisville,  and  has  not  yet  rcturiicd.    Since  his  departure,  I  have  taken  in 


Rep.    No.  313.  159 

draft  No.  2746  on  War  warrant,  in  favor  of  Captain  Ogdcn,  for  ;S.5,000:; 
and  draft  No.  1932,  on  Treasury  warrant,  in  favor  of  J.  F.  Farley,  for  531. 
I  would  forward  tham  to  the  Department,  but  I  do  not  feel  myself  prop- 
erly authorized  to  do  so. 

There  is  on  iiand,  in  silver,  about  ^7,500,  which  I  hold  ro:idy  for  any 
draft  drawn  by  the  Treasury  Department,  or  the  refunding  to  individuals, 
agreeably  to  directions  from  the  Conuuissioner  of  the  General  Land  Office. 
Colonel  Pollock  I  expect  back  shortly.  Marks  Crume,  Esq.,  has  not  yel 
arrived. 

The  iS  10,000  dral't  has  not  yet  been  presented  for  payment. 
I  am,  respectfully,  sir,  your  obedient  servant, 

TAYLOR  W.  WEBSTER. 
Hon.  Levi  Woodbury, 

Secretary  of  the  Treasury ,  Washington  city. 


Treasury  Department,  May  10,  1838. 
Sir:  I  regret  to  inform  you,  in  reply  to  your  letter  of  the  3d  instant,  thai 
after  the  liberal  delay  which  has  occurred,  it  will  be  necessary  to  make  ade- 
posite  forthwith  of  the  balance  due  by  you  at  the  Savings  Listitution  at 
Louisville,  in  order  to  prevent  the  district  attorney  from  instituting  legal 
proceedings  on  your  bond. 

I  am,  very  respectfully,  your  obedient  servant, 

LEVI  WOODBURY, 
James  T.  Pollock,  Esq.,  Secretary  of  the  Treasury. 

Dearborn  county,  Indiana. 


[Balance  due  from  J.  T.  Pollock,  late  receiver,  fourteen  thousand  e\g\& 
hundred  and  ninety-one  dollars  and  ninety-eight  cents,  (Sl4,S91   98.)] 


4. — Correspondence  luith  William  Linn,  receiver  at  Galena. 

Treasury  Department,  June  23,  1834, 

Sir:  I  regret  to  be  under  the  necessity  of  calling  your  attention  to  thai 
provision  of  the  regulations  for  the  deposite  of  the  public  money  which 
requires  that  each  deposite  should  endirace  the  whole  amoimt  in  the  pos- 
session of  receivers.  According  to  your  returns,  there  was  in  your  hands 
on  the  31sl  of  March  last,  the  sum  of  >&10,643  49;  on  the  30th  of  April, 
the  sum  of  vSl2,453  32;  on  the  31st  of  May,  the  sum  of  JS13,505  10; 
yet  it  appears  that  its  transfer  to  the  bank  of  deposite  was  deferred  until 
the  31st  of  May,  and  that  the  sum  then  deposited  amounted  to  no  more 
than  §8,000.  Under  these  circumstances,  it  becomes  my  dnty  to  direct  that 
the  whole  amount  of  public  moneys  in  your  hands  at  the  time  of  the  re- 
ceipt of  this  letter  be  forthwith  deposited,  and  to  apprize  you  that  strict 
and  punctual  attention  to  the  regulation  in  relation  to  the  deposite  of  the 
public  money  is  indispensable. 

1  am.  &('. 

R.  B.  TANEY, 

Wm.  Linn,  Esq.,  Secretary  of  the  Treasury. 

Receiver  of  Public  Money,  Vandalia. 


160  Rep.  No.  313. 

Receiver's  Office, 

Vandalia,  September  30,  1834. 

Sir:  Agreeable  to  your  circular  directing  the  payment  to  be  made  to 
the  creditors  of  the  Government,  I  have  gone  on  to  pay  to  Captain  A.  C. 
Ogden,  superintendent  of  tlie  Cumberland  road,  in  Indiana  and  Illinois, 
which  saves  the  transportation  of  the  Government  funds  from  this  place 
to  Louisville,  as  well  as  transporting  them  from  Louisville  to  this  place. 
This  is  of  importance  to  the  superintendent  as  well  as  myself,  and  a  saving 
to  the  Government. 

Captain  A.  C.  Ogden  will  apprize  you  of  this  arrangement,  and  request  a 
dr-aft  on  me.     He  is  now  at  Terre  Haute. 

I  have  the  honor  to  remain,  with  great  respect,  your  obedient  servant, 

WM.  LINN,  Receiver. 

Hon.  I..EVI  Woodbury, 

Secretary  of  the  Treasury. 


Treasury  Department,  October  23,  1834. 

Sir:  I  would  remark,  in  reply  to  your  letter  of  the  30th  uUimo,  that 
you  are  not  authorized  to  retain  the  public  money  in  your  hands,  to  meet 
anticipated  demands  arising  under  the  circular  of  August  last,  contrary 
to  the  regulations  which  the  Department  has  prescribed  for  the  periodical 
deposite  thereof. 

Observing,  from  your  monthly  return  of  the  30th  ultimo,  that,  notwith- 
standing the  positive  injunction  contained  in  a  letter  from  the  Department 
dated  the  23d  of  June  last,  (of  which  a  copy  is  herewith  enclosed,)  the 
public  moneys  have  been  permitted  to  accumulate  in  your  hands,  in  viola- 
tion of  the  law  and  the  instruction  of  the  Department,  since  the  31st  of 
May  last,  and  that  it  amounted  on  the  30th  ultimo  to  the  sum  of 
^10,976  39,  I  am  constrained  by  your  continued  neglect  to  call  your  imme- 
diate attention  to  the  subject,  and  again  to  require  that  the  whole  of  the 
public  moneys  in  your  possession  be  deposited  forthwith.  Unless  you  ex- 
hibit to  the  Department  satisfactory  evidence  of  your  having  done  so  prior 
to  the  1st  day  of  December  next,  accompanied  by  a  statement  showing  your 
receipts  and  disbursements,  and  the  bahmce  with  which  you  are  chargea- 
ble at  the  time  of  such  deposite,  it  will  be  my  painful  duty  to  submit  the 
case  for  the  action  of  the  Executive,  and  to  recommend  the  appointment 
of  another  person  as  your  successor. 

I  am.  &c. 

LEVI  WOODBURY, 

Secretary  of  the  Treasury. 

Mr.  William  Linn, 

Receiver  of  Public  Money,  Vandalia,  Illijiois. 


Receiver's  Office, 

Vandalia,  Noveynber  IG,  1834. 
Sir:    Your  letter  of  the  23d  ultimo  has  been  received,  in  relation  to 
my  not  having  deposited  the  public  moneys  in  my  hand  at  the  time  spe- 


Uep.   No.  313.  161 

cifiod  by  the  law  on  that  subject,  as  well  as  by  your  instructions.  When 
the  Bank  of  Louisville  rescinded  her  contract  with  the  Department,  I 
waited  a  considerable  time  for  advice  I'rom  the  Department  how  I 
should  act ;  receiving  no  instructions,  I  wei>t  on  to  make  adeposite,  in  the 
Branch  Bank  of  the  United  States  at  St.  Louis,  of  eight  thousand  dollars, 
of  which  I  advised  you.  I  then  received  your  instructions  to  continue  to 
depositc  in  the  Bank  of  Louisville;  shortly  after  which,  I  received  your 
circular  of  August  the  6th,  to  pay  over  to  any  creditors  of  the  United 
States  that  I  might  have  confidence  in  ;  and  shortly  after,  your  instructions 
to  d,eposite  in  the  Savings  Institution  of  Louisville.  Your  circular  instruc- 
tion, under  date  of  the  6th  of  AugiLst,  was,  and  is,  considered  a  matter  of 
great  importance  to  the  people  of  this  section,  particularly  as  there  are  no 
banks  nearer  than  St.  Louis  and  Louisville.  And  imder  that  circular,  I 
have  paid  over,  to  the  orders  of  Captain  Ogden,  several  thousand  dollars ; 
and  sent  you,  with  my  last  monthly  return,  his  receipt  for  three  thousand 
dollars  ;  and  have  continued  to  pay  to  his  order  from  time  to  time,  for 
which  he  has  promised  to  request  drafts  in  his  favor  on  me  hereafter. 

You  have  ordered  that  my  accounts  with  the  Department  be  closed  on 
the  first  of  the  next  month.  I  shall  be  compelled  to  beg  your  indulgence 
until  the  last  of  the  month,  at  which  lime  the  quarter  will  end ;  which 
will  give  me  time  to  see  Captain  Ogden,  and  to  settle  my  accounts  with 
him.  The  payments  made  by  me,  and  to  the  order  of  Captain  Ogden, 
have  been  of  great  importance  to  all  who  had  moneys  due  them  from  the 
road;  as  they  received  their  money  instead  of  checks  on  distant  banks; 
and  if  I  have  acted  contrary  to  your  circular,  it  shall  ])e  my  business  to 
repair  any  injury  that  the  Government  may  have  sustained,  by  my  future 
conduct,  which  shall  be  governed  by  your  instructions. 

I  am,  with  sentiments  of  respect,  your  obedient  servant, 

WM.  LINN,  liecciver. 

Hon.  Levi  Woodbury, 

Secretary  of  the  Treasury, 


Treasury  Department,  December  4,  1834. 
Sir:  Allow  me  to  inquire  why  it  is  that  your  letter  of  the  16th  ultimo 
is  entirely  silent  as  to  your  neglect  to  con)piy  with  the  positive  directions 
contained  in  a  letter  from  the  Department  dated  23d  June  last,  and  that 
you  still  neglect  to  pay  over  the  public  money  in  your  hands,  or  to  furnish 
the  statement  as  required  by  my  letter  of  the  23d  uUimo,  and  a  statement 
of  your  advances  to  Colonel  Ogden. 
I  am,  &c., 

LEVI  WOODBURY, 

Secretary  of  the  Treasury. 
William  Linn,  Esq., 

Receiver  of  Public  Money,  VandaVia,  Illinois. 


Treasury  Department,  February  12,  1835. 
Sir:  Although  it  has  pleased  the  President,  under  the  explanations 
given,  notwiihstanding  your  past  neglect  in  some  cases  to  deposite  the 


162  Rep    No.   313. 

public  moneys  as  required  bylaw  and  the  instructions  of  the  Department^ 
to  renominate  you  lor  the  oifice  of  receiver  of  pubHc  money  at  Vandaha. 
and  your  nomination  has  been  confirmed,  yet  it  is  not  to  be  inferred,  from 
this  evidence  of  his  regard,  that  any  future  omission  in  this  resj)ect  can  be 
overlooked.  Once  for  all,  then,  I  would  inform  yon  tliat  a  strict  observ- 
ance of  the  regulations  of  the  Department,  for  the  periodical  deposite  of 
the  public  money,  and  the  transmission  of  your  accounts  and  returns,  are 
paramount  duties,  the  neglect  of  which  will  be  reported  for  the  action  of 
the  Executive. 

I  am,  &.C., 

LEVI  WOODBURY, 

Secretary  of  the  Treasury • 
William  Linn,  Esq., 

Receiver  of  Public  Money,  Vandalia,  Illinois. 


Receiver's  Office, 

Fandalia,  March  18,  1835. 

Sir:  Your  letter  of  instructions,  and  advising  me  of  my  reappointment, 
has  been  received.  I  flatter  myself  that  you  are  now  satisfied  that,  al- 
though I  may  have  erred  in  the  payment  of  the  Government  money  to 
the  snpei'intendent  of  the  Cumberland  road,  it  was  to  be  attributed  to  the 
pvirest  motives,  and  not  with  a  wish  oi  intention  to  infringe  upon  the  re- 
quired duties  of  my  office.  From  the  vouchers  furnished  you,  it  will  be 
shown  that,  since  the  month  of  September  last,  I  have  paid  jS  15,000. 
This,  as  well  as  the  balance  in  my  iiands,  lias  always  been  paid  over  to 
the  order  of  the  superintendent,  before  I  received  any  voucher  from  him, 
which,  consequently,  placed  my  accouilts  behind.  Those  payments  were 
made  by  me  under  the  presumption  that  I  would  be  sustained  by  your 
circular  of  the  6th  of  August  last ;  and  before  doing  so,  I  had  consulted 
my  friends  here,  (including  a  number  of  my  securities,)  who  coincided 
with  me  in  the  construction  of  that  circular;  and  further  concluded,  that 
by  making  those  payments  I  was  doing  the  public  a  service,  and  would 
not  incur  your  dissatisfaction.  The  piirascology  of  the  superintendent's 
receipts  never  corresponded  with  my  own  on  the  subject,  as  they  repre- 
sented or  purported  that  the  moneys  paid  by  me  were  to  be  expended  for 
the  use  of  the  Cumberland  road,  instead  of  stating,  as  they  should  have 
done,  that  they  had  been  expended  for  that  purpose.  For,  permit  me  to 
remark  to  you,  sir,  that  the  moneys  were  always  paid  long  before  I  re- 
ceived the  vouchers;  consecjuently,  my  arrears  appeared  large,  when,  in 
fact,  I  had  but  an  inconsiderable  fund  on  hand  belonging  to  the  Govern- 
ment. The  citizens  and  laborers  on  the  road  looked  upon  this  arrange- 
ment as  one  of  the  best  that  could  be  adopted.  The  iiands  were  generally 
paid  in  specie,  which  they  invariably  preferred  :  tliey  might  otherwise 
have  been  paid  in  checks  on  the  Bank  of  Louisville — a  result  to  them,  per- 
haps, not  the  most  agreeable,  as  the  intercourse  between  this  and  that 
place  is  inconsiderable,  and,  consequently,  a  loss  would  have  been  the  con- 
sequence to  the  la])orer. 

The  last  payment  from  Captain  Ogden  to  me  was  in  a  check  of  i?5,000,. 
drawn  at  Louisville,  on  his  way  to  Washington  city.  He  has  not  as  yet 
returned:  when  he  does,  I  will  close  my  accounts  with  him,  and  pay  over 


Rep.  No.  313.  163 

IK.)  more  moneys  without  a  special  order  iVom  you  to  that  efl'ect.  My 
duty  1  will  endeavor  to  fulfil.  I  would  beg  leave  to  refer  you  to  my  let- 
ter addressed  to  the  honorable  Mr.  Taney,  in  reference  to  the  SS,000  de- 
posited by  me  in  the  Branch  Bank  of  the  United  States  at  St.  Louis.  I 
never  received  any  connnimication  from  him  while  in  office,  except  a  cir- 
cular under  date  of  the  iiOtli  of  November,  1S33,  directing  all  future  depos- 
ites  to  be  made  in  the  Bank  of  Louisville.  That  bank  declined  receiving 
Government  moneys  ou  deposile.  I  waited  to  hear  from  the  Secretary, 
to  know  how  1  should  act  on  the  occasion :  and  the  sums  were  accumu- 
lating on  my  hands,  increasing  tlie  responsibility  of  their  safe-keeping.  1 
was  prompted  to  a.ssume  a  further  responsibility,  by  making  the  deposite 
in  the  Branch  Bank  of  the  United  States  at  St.  Louis,  and  addressed  him 
an  explanatory  letter  to  that  etiect,  to  which  I  never  received  any  reply; 
and  it  was  not  until  the  day  the  Senate  of  the  United  States  acted  on  his 
nomination,  tjiat  I  received  a  communication  from  him  calling  my  attention 
,to  my  duty,  without  suggesting  any  place  of  deposite  for  the  sum  above 
specified,  and  without  noticing  the  contents  of  my  letter  to  him  in  refer- 
ence to  the  558,000  which  I  had  already  deposited. 

I  have  determined  to  accept  the  office  you  have  tendered  me,  although 
1  had  been  nominated  by  the  Governor,  and  confirmed  by  the  Senate, 
to  the  most  responsible  oliice  in  the  State  of  Illinois — that  of  canal  com- 
missioner and  treasurer  of  the  board.  At  the  solicitation  of  my  fellow- 
citizens  of  this  district,  I  have  declined  the  appointment  conferred  upon 
me  by  the  State,  and  shall  enter  on  the  duties  of  receiver  as  soon  as  I  file 
my  bond,  which  will  be  in  the  course  of  a  few  days.  My  secinities  living 
in  different  parts  of  the  State,  and  the  district  judge  and  attorney  being 
residents  of  Kaskaskia,  a  distance  of  100  miles,  will  Occasion  some  little 
delay  in  the  approval  and  transmission  of  my  bond. 

Flattering  myself  that  this  letter  may  prove  satisfactory,  I  have  the 
honor  to  remain,  with  great  resjx^ct,  your  obedient  servant, 

WILLIAM  LINN. 

Hon.   Levi  Woodbury, 

Secretary  of  I  he  Treasury. 


Receiver's  Office, 

Vandalia,  May  31,  1835. 
Sir:  I  have  the  honor  to  transmit,  herewith,  my  account  current  for 
tlie  month  ending  this  day.  I  would  beg  leave  to  refer  you  to  the  com- 
munication you  will  receive  from  William  J.  Brown,  Esq.,  examiner  of 
the  land  oifice  here,  for  an  explanation  of  the  cause  which  lias  prevented 
me  from  making  a  deposite  of  the  public  moneys  at  the  expiration  of  the 
present  month.  The  roads  throughout  the  State  have  been  rendered  im- 
passable by  frequent  and  heavy  rains. 

On  the  termination  of  the  present  quarter,  1  shall  make  a  deposite  of 
all  the  public  moneys  I  may  have  received. 

I  have  the  honor  to  remain,  with  great  respect,  your  obedient  servant, 

WM.  LINN,  Receiver. 
Hon.  Levi  Woodbury, 

Secrelarij  of  the  Treaaury. 


^^4  Rep.  No.  313. 

Treasury  Department, 

o         V  ,  ,  November  30,  1835. 

tember  InroToblX^'^'^^^'l' k '^"^^^^  ^''  '^'^  months  of  August,  Sep- 
tember and  October,  tiave  not  been  received.     The  frequent  occasions 

rt;:  t"  utttre^oTt^^^^      ''  "^^^^^  ^  "^^^^^^^  ^'  rSer^m  r 
nt?n.      m"^  ^"^  ^^'""^  "^^^^  effectual  remedy  than  mere  com- 

shall  report  any  future  omission  in  this  respect  for  the  action  of  the 
Executive,  unless  satisfactory  reasons  are  ass  gned  for  the  neAect      The 
returns  in  arrear  are  expected  to  be  traiLsmitted  forthwith        " 
I  am,  &c. 

LEVI  WOODBURY, 
Secretary  of  the  tneasury. 
Keceivers  of  Public  Money 

at  Galena,  Illinois,  and  Tallahassee,  Florida. 


Receiver's  Office, 

f^andalia,  December  31,  1835. 

Dartmen  "o^fhlf^  ^'"'p'-  ^  P'°™^''^  '°  '^°'^  "^^  ^^^°""^^'  ^^^^h  the  De- 
ft f^w.i.h  T  n  ^^-  .^rr^'''''''''  ^'^^"^  "^y  ^^^"^'•o^  have  prevented 
It,  for  which  I  hope  satisfactory  reasons  have  been  given  by  my  friends 

Captain  Ogdeii  being  absent  from  his  office  has  presented  me  from  ot 
teimng  from  him  a  receipt  for  ^6,383  paid  over  Jo  his  order.  You  wSl 
observe  from  Captain  Ogden's  receipts  that  the  moneys  Iiad  been  pid 
over  previous  to  my  obtaining  from  him  the  receipts.     I  1  ave  now  on 

Mv  fd^nds"^  W:^^  Tl  '"'^'  '''■'  ^-^^"^  ''  ^'^'''  «^'  P^^t)hc  moTeys 
My  riends  at  Washington  have  received  letters  upon  this  subject  from 
gentk^men  here,  which  I  hope  will  prove  satisfactory.  ^ 

1  have  the  honor  to  remain,  with  great  respect,  your  obedient  servant, 
„        ^  WiVI.  LINN,  Receiver, 

rion.  Levi  Woodbury, 

Secretary  of  the  Treasury. 


Treasury  Department, 

February  4,  1836. 
Sir  :  Your  returns  for  the  months  of  October,  November,  and  Decem- 
xl':.]^?rr'      T  '"^^i^^^d;     I  ^^g'-et  that  there  should  be  any  occasion 

du  V    nVl     "'f        ''I'/'J'^f "' ^^'  '^'"  "^'°  "^^y  ^^^)  "^  this  important 
duty,  and  avail  myself  of  the  occasion  to  inform  you  that,  unless  your 

.PpZf/h'?r  '''''  u'T^'u  ^  ^'  '^'''  Department  within  the  month  next  suc- 
ceeding that  for  which  the  return  is  rendered,  it  will  place  me  under  the 


Rep.  No.  313.  165 

disagreeable  necessity  of  reporting  the  fact  to  tlie  Executive,  in  order  to 
comply  with  the  general  rule  in  this  class  of  cases. 
I  am,  &c. 

LEVI  WOODBURY, 
Secretary  of  the  Treasury. 

To  Receivers  at  Palmyra,  Alissouri,  October,  November,  and  December  ; 
Edwardsville,  Illhiois,  November  and  December ;  Qidncy,  Illinois, 
November  and  December  ;  Shaivneetoivn,  Illinois,  October,  November, 
and  December  ;  Cahaba,  Alabama,  Noverjibcr  and  December ;  St.  Ste- 
phen''s,  Alabama,  November  and  December  ;  Colnmbus.  Mississippi, 
November  and  December ;  Mount  Sahis,  Mississijipi,  November  and 
December;  Helena,  Arkansas,  December;  Washingtoii,  Arkansas, 
December  ;  2^nesinlle,  Ohio,  December  ;  Plnceiines,  Indiana,  Decem- 
ber ;  Chicai^o,  Illinois,  December ;  Galena,  Illi)iois,  December;  Van- 
dalia,  Illinois,  December ;  Tuscaloosa,  Alabama,  December ;  Au- 
s^iista,  Mississippi,  December;  Chocchnma,  Mississippi,  December ; 
New  Orleans,  Ouachita,  and  St.  Helena,  Louisiana,  December ; 
^Green  Bay,  Michigan,  December  ;  Batesville,  Arkansas,  December. 


Receiver's  Office, 

Vandalia,  February  26,  1836. 
Sir  :  Your  letter  of  the  4th  instant  has  been  received,  in  which  you 
complain  of  my  returns  for  December  not  having  been  received.  I  will 
refer  you  to  the  Commissioner's  otiice  for  my  reasons  for  the  returns  not 
having  been  forwarded  at  the  usual  time,  and  I  hope  they  may  prove  satis- 
factory. 

I  have  the  honor  to  remain,  with  great  respect,  your  obedienl  servant, 

WM.  LINN,  Receiver. 
lion.  Levi  Woodbury, 

Secretary  of  the  Treasury. 


Treasury  Department,  July  25,  1836. 
Sir  :  I  am  in  the  receipt  of  your  letter  of  the  30th  ultimo,  covering 
your  account  current  for  the  month  of  June,  with  two  certificates  of  de- 
posite ;  one  of  which  bears  date  on  the  30th  of  said  month.  I  wish, 
therefore,  to  be  informed  why  the  entire  amount  of  money  on  hand  at 
the  time  the  last  deposite  was  made  was  not  included  in  it ;  the  balance 
appearing  by  your  account,  not  deposited,  amounts  to  Si 5,129  04,  which 
I  have  to  request  may  be  forthwith  placed  in  bank  to  the  credit  of  the 
Treasurer  of  the  United  States. 

I  am,  very  respectfully,  &c 

LEVI  WOODBURY, 

Secretary  of  the  Treamry. 
William  Linn,  Esq., 

Receiver  of  Public  Money,  Vandalia,  Illinoii. 


166  Rep.  No.  313. 

,  Treasury  Department, 

Novcmhe7'  3\  1837. 
Sir:  Observing  that  large  sums  of  money  received  by  you  in  payment 
for  public  lands  still  remain  in  your  hands.  I  have  to  request  that  you  will 
let  me  know  why  the  same  not  are  placed  to  the  credit  of  the  Treasurer 
in  the  State  Bank  of  Missouri,  at  St.  Louis. 
I  am,  &c. 

LEVI  WOODBURY, 

Secretary  of  the  Treasury. 
Receiver  ov  Public  Money, 

Vandaliay  lUinoia. 


Treasury  Department, 

December  8,  1837. 
Sir  :  Your  letter  of  the  28th  ultimo,  aimouncing  the  death  of  Mr,  Pren-. 
ti.ss,  register,  is  received.  Again  it  becomes  my  duty  to  call  your  atten- 
tion to  the  subject  of  my  former  letters  in  reference  to  the  deposite  of  the 
public- money  •,  and  to  inform  you  that  if,  by  return  of  mail,  evidence  is 
not  received  of  your  having  complied  with  the  requirements  of  my  letters 
of  IGth  August  and  3d  November,  it  will  be  my  unpleasant  duty  to  report 
your  neglect  to  the  President,  and  to  recommend  your  removal  from 
office. 

I  am,  &c. 

LEVI  WOODBURY, 

Secretary  of  the  Treasury. 
William  LiNxV,  Esq., 

Receiver,  Vandaliu,  Illinois. 


Treasury  Department, 
/  January  20,  1838. 

Sir  :  Your  letter  of  the  7th  instant  is  received,  and  your  resignation  is 
accepted  by  the  President.     I  regret  that  so  large  a  balance  stands  'unad- 
justed in  your  hands,  and  trust  that  cerlilicates  of  deposite  for  the  amount 
with  the  Bank  of  Missouri  will,  without  delay,  be  forwarded  here, 
I  am,  &c. 

LEVI  WOODBURY, 

Secretary  of  the  Treus^iry. 
William  Linn,  Esq.,  Vandalia. 


[Balance  due  froui  Mr.  Linn,  tifty-rivc  tliousand  ninf  hundred  andsixfy- 
two  dollars  and  six  rents,  ($55,962  06.)] 


Bep.   No.   313.  167 

5, — Correspondence  ivi/h  JV.  P.  Harris,  receiver  at  Columbus. 

Circular  to  Receivers  of  Puljlic  Money. 

Trkasury  Departaient,  ./(r/wt/rtry  15,  1834. 

Sir:  Many  of  the  receivers  of  public  money  having  failed  to  observe 
that  part  of  the  general  instruction  of  the  Department  dated  1st  of  May, 
1831,  which  relates  to  the  endorsement  therein  required  to  be  made  on 
the  receipts  given  by  them  in  payment  for  public  lands,  and  omitted  to 
furnish  statements  of  the  aggregate  amount  received  in  each  description 
of  funds  in  each  month,  it  becomes  my  duty  to  call  your  particular  atten- 
tion to  the  regulation  referred  to,  and  to  insist  upon  its  strict  observance, 
as  well  dnritiir  the  ])ublic  sales  as  at  the  time  of  private  entries.  In  the 
performance  of  this  duty,  it  is  essentially  necessary  that  the  endorsements 
should  exhil)it  the  amount  received  in  the  funds  of  each  banlr,  and  that 
the  monthly  statement  should  afford  like  information  in  regard  to  the 
aggregate  receipts  of  each  month.  As  the  existing  instructions  given  for 
the  regulation  of  your  conduct  in  the  receipt  of  bank  notes  in  payment 
for  public  lands  authorize  you,  under  circumstances  of  well-founded  dis- 
trust, to  discontinue  the  receipt  of  the  notes  of  the  State  .1  anks  at.  any- 
time, it  is  not  proposed  to  make  any  change  in  the  instructions  which 
have  heretofore  governed  you  in  the  receipt  or  refusal  of  such  notes. 

I  would,  however,  enjoin  upon  you  a  vigilant  attention  to  the  interests 
involved  in  the  authority  thus  given  you,  and  the  exercise  of  a  sound  dis- 
cretion in  the  use  of  it. 

I  take  the  occasion  to  advert  to  the  necessity  of  a  prompt  compliance 
with  the  regulations  of  the  Department  in  regard  to  the  deposite  of  the 
public  moneys,  and  a  punctual  observance  of  the  instructions  which  re- 
late to  your  monthly  returns.     I  am,  &c. 

R.  B.  TANEY, 
Secretary  of  the  Treasury. 


Columbus,  (Miss.)  February  13,  1834. 

Dear  Sir:  Enclosed  you  will  find  a  certificate  of  deposite  from  Wm. 
B.  Winston,  cashier  of  the  office  of  the  Planters'  Bank  at  this  place,  for 
the  sum  of  thirty-five  thousand  two  hundred  and  eighty-one  dollars  and 
eight  cents,  which  has  been  placed  to  the  credit  of  the  Treasurer  of  the 
United  States.  I  have  heretofore  enclosed  you  the  following  certificates 
of  deposites,  and  have  not  received  an  acknowledgment  of  the  same.  I 
would  be  glad  you  would  acknowledge  the  same  in  your  next.  To  wit ; 
Certificate  of  deposite  from  S.  Sprague,  cashier  Planters'  Bank,  dated 

October  30,  1833,  for        .    ,         .  "         .  -  -      g  10,800  73 

One  dhto  November  25,  1833,  for   -  -  -  -  2,971   16 

One  ditto  November  30,  1833,  for    -  -  -  -  8,300  00 

One  ditto  December  23,  1833,  for    -  ,-  -  -      iy7,7(i8  51 

One  ditto  from  W.  B.  Winston,  cashier  of  Planters'  Bank, 

dated  January  11,  1834,  for  .  -  -  -        75,990  80 

Certificate  enclosed  .  _  .  -  -        35,281  OS 

S33I,118  28 


168  Rep.  No.  313. 

Your  circular  dated  the  15th  ultimo  is  received.     I  shall  strictly  attend 
to  the  same.     It  was  not  practicable  for  me  to  make  the  endorsements 
during  the  land  sales,  and  since  that  time   I  have  been  so  very  busy 
making  out  my  returns  that  I  have  not  been  able  to  attend  to  it. 
Respectfully,  yours, 

W.  P.  HA.RRIS,  Receiver. 
To  the  Secrktakv  of  the  Tueasury. 


Treasury  Department, 

February  7,  1834. 
Sir:  It  has  been  represented  to  this  Department  that  some  of  the  re- 
ceivers of  public  money  in  Mississippi  have  been  engaged  in  trading  on 
the  bank  notes  they  receive  in  payment  of  public  lands,  by  exchanging 
them  for  bank  notes  of  inferior  value.  I  hope  that  there  may  be  some 
mistake  in  this  business,  as  it  is  my  duty  to  state  to  you  that  such  con- 
duct would  be  regarded  by  this  Department  as  a  gross  violation  of  official 
duty,  and  be  treated  accordingly.  But,  as  such  a  statement  has  been 
made  from  the  most  respectable  authority,  I  nuist  ask  whether  you  have 
engaged  in  any  such  use  of  the  pubUc  money  received  by  you;  and  re- 
quest a  prompt  answer  to  this  inquiry. 

I  am,  &c. 

R.  B.  TANEY, 
Secretary  of  the  Treasury, 
To  Receivers  ok  Public  Money 

at  Jliigiistay  Salus,  JVashingtou,  Chocchunia,  and  Columbus. 


Receiver's  Office, 

Columbus,  (Miss.)  February  26,  1834. 

Sir:  Yours  of  the  7th  iiLstant  is  at  hand.  I  presume  tliat  the  charge  of 
changing  the  public  niDueys  for  other  of  less  value  was  not  made  in  rela- 
tion to  myself.  If  it  was,  1  must  plead  guilty  in  this  much:  that  I  have, 
for  the  accommodation  of  travellers,  exchanged  money  to  suit  that  section 
of  country  to  whicli  they  were  going ;  but  in  no  instance  have  I  ever 
taken  any  money  but  what  was  receivable  in  payment  of  lands.  To  this, 
I  think,  the  register  will  do  me  the  justice  to  certify. 

I  am,  very  respectfully,  your  obedient  servant, 

W.  P.  HARRIS,  Receiver. 

Coi.UMHUS,  February  26,  1834. 
1  have  perused  the  above  communication,  and,  as  reference  is  made  to 
me,  I  hare  no  hesitation  in  saying  that  the  facts  therein  set  forth  are  per- 
fectly in  accordance  with  truth,  so  far  as  my  knowledge  extends. 
Respectfully, 

WILTJAM  DOWNING,  7?c^w/cr- 
Hon.  R.  B.  Taney, 

Secretary  of  the  Treasury. 


Kep.  No.  313.  1G9 

Treasury  Department,  March  6,  1834. 
Sir  :  The  several  certificates  of  deposites  referred  to  in  your  letter  of 
the  13th  uhimo  were  received  in  due  course.  As  the  ackiiowledgment 
of  such  papers  and  returns  addressed  to  the  Department  would  greatly 
add  to  the  business  of  the  office,  it  has  not,  on  that  account,  been  usual  to 
do  so.  When  not  advised  to  the  contrary,  it  may  be  presumed  they  have 
been  received  ;  and,  in  regard  to  the  returns  which  are  required  to  be 
rendered,  it  becomes  my  duty  to  advise  you  that  those  for  the  months  of 
November,  December,  and  January,  are  in  arrear :  and  to  say  to  vou  that 
a  strict  and  punctual  observance  of  this  duty  is  indispensable. 

I  am,  &c. 

R.  B.  TANEY, 
W.  P.  Harris,  Esq.,  Secretary  of  the  Treasin-y. 

Receiver  of  Public  Money,  (■olunibus,  Miss. 


Treasury  Department,  March  17, 1834. 
Sir  :  1  have  received  your  letter  of  the  26th  ultimo,  and  have  only  to 
say  that  the  Department  cannot  approve  any  exchange  whatever  in  the 
money  received  by  you  ;  that  which  is  received  must  be  deposited. 

I  am,  &c. 

R.  B.  TANEY. 
W.  P.  liARRis,  Esq.,  Secretary  of  the  Treasury. 

Receiver  of  Public  Money,  Columbjis,  Miss. 


Treasury  Department,  March  25,  1834. 
Sir  :  The  Department  having  received  no  monthly  returns  showing 
the  transactions  of  your  office  from  the  month  of  October  last,  I  have 
thought  proper  to  inform  you  that,  as  a  means  of  enforcing  a  strict  com- 
pliance with  the  regulations  of  the  Department,  in  respect  to  this  duty,  I 
shall  not  hesitate  to  report  the  case  for  the  action  of  the  Executive,  should 
the' neglect  be  continued.  I  am.  &.c. 

R.  B.  TANEY, 
W.  P.  Harris,  Esq.,  Secretary  of  the  Treasury. 

Receiver  of  Public  Money,  Columbus,  Miss. 


Treasury  Department,  May  19,  1834, 
Sir  :  I^cst  the  letter  of  whicli  the  enclosed  is  a  duplicate  may  have  mis- 
carried, I  have  thought  it  proper  to  transmit  a  copy,  and  again  to  call  your 
attention  to  its  requirements.  I  am,  &c. 

R.  B.  TANEY, 
Receivers  of  Purlic  Money,  Secretary  of  the  Treasury. 

Augusta,  Mount  Salus,  Columbus,  Chocchuma. 


Receiver's  Office, 
Columbus,  (Mi.isissippi.)  June  6,  1834. 
Sir  :  Yours  of  the  19th  ultimo  is  received  ;  and,  in  reply,  I  only  have  to 
say  that  my  monthly  accounts  current  for  the  months  of  November  and 
12 


170  Kep.  No.  313. 

December,  1S33,  and  lor  the  mcntfis  of  January,  February,  March,  and 
April,  1S34,  were  forwarded  you  in  due  time  ;  and  why  you  have  not  re- 
ceived them  I  am  unable  to  account  for,  unless  it  is  owing  to  a  failure  in 
the  mails;  they  were  regularly  forwarded  you  and  to  the  Conniiissioner  of 
the  General  Land  Office,  and  mailed  in  tlie  post  office  at  tliis  place.  My 
monthly  account  current  for  this  montii  is  now  ready,  and  only  wants  a 
comparison  with  the  register's  register  of  receipts,  wiiich,  when  com- 
pared, will  be  forwarded. 

RespectfuUv,  sir,  vour  obedient  servant, 

W.  P.  HAi^RIS, 
Receiver  of  Public  Money  at  Columbus,  Miss. 
Hon.  Secretary  of  the  Treasury. 


Treasury  Department,  February  G,  1S35. 
Sir  :  I  regret  that  there  sliould  be  occasion  for  again  calling  youratten- 
tion  to  the  omission  to  render  your  monthly  duplicate  returns  to  this  oflice 
for  the  months  of  November  and  December,  (those  being  in  arrcar.)  and 
to  remind  you  that  punctuality  in  this  respect  is  indispensable. 

I  am,  &c. 

LEVI  WOODBURY, 
W.  P,  Harris,  Esq..  Secretary  of  the  Treasury. 

Receiver  of  Public  Money,  Colwmbus,  Miss. 


CIRCULAR. 
Treasury  Department,  February  28,  1835. 
Sir  :  It  has  been  intimated  to  the  Department  that  a  practice  prevails 
at  some  of  the  land  offices  of  permitting  entries  and  issuing  certificates 
of  purchase  without  the  payment  of  the-  purchase-money  at  the  time  of 
the  entry.  Such  a  .])ractice  being  unauthorized  and  highly  reprehen- 
sible, I  have  deemed  it  proper  to  make  known  to  you,  that  if  it  has  been 
tolerated  by  you,  it  must  immediately  cease  ;  and  any  repetition  of  it  here- 
after, coming  to  th(i  knowledge  of  the  Department,  will  receive  prompt 
and  exemplary  notice. 

I  cannot  omit  the  occasion  to  impress  upon  you  the  necessity  of  a  strict 
attention  to,  and  punctual  compliance  with,  the  duties  required  of  you  in 
regard  to  the  prompt  deposite  of  the  public  moneys,  and  the  transmission 
of  your  accounts  and  returns  ;  and  to  say  to  you  that  the  performance  of 
those  duties  must  be  regarded  as  paramount  to  all  other  in  your  oflicial 
station.  I  am,  &.c. 

LEVI  WOODBURY, 

Secretary  of  the  Treasury. 

To  Receivers  of  Puueic  Money  at  Cahaba,  Huntsville,  Montgomery, 
St.  Stephen's,  ^^iugusta,  Chocchunia,  New  Orleans,  Ouachita,  Demo- 
polls,  Mardisville,  Sparta,  Tuscaloosa,  Columbus,  IVashington,  Opc- 
lousas,  and  St.  Helena. 


Treasury  Department,  3/t/rcA  17,  1835. 
Sir  :  Having  received  no  monthly  duplicate  return  of  the  transactions 
of  your  office  since  that  for  the  month  of  October  last,  it  becomes  my 


Rep.  No.  313.  171 

unpleasant  duty  to  call  your  immediate  attention  to  the  omission.  Allow 
me  to  (express  a  hope  that  there  may  be  no  further  occasion  to  remind  you 
of  the  importance  of  punctuality  in  the  transmission  of  these  returns. 

I  am,  &c. 

LEVI  WOODBURY, 

Secrelar}/  of  the  Treasury. 
To  Receivers  of  Public  Money  : 

W.  P.  Harris,  Colu7nbiis,  Mississippi. 
R.  H.  St  RULING,  Chocckumd,     do. 
B.  R.  KoDGERS,  Opeloxisas,  Louisiana. 
T.  Simpson,  Demopolis,  Alabama. 
[Xovember  for  October  for  tlie  two  last  named.] 

P.  S.  To  tlie  receiver  at  Opelousas :  Having  received  no  evidence  of 
your  compliance  with  the  requirements  of  my  letter  of  the  1st  November 
last,  I  take  occasion  to  apprize  you  that,  unless  yon  exhibit  satisfactory 
evidence  of  your  having  deposited  the  whole  of  ihe  public  money  m 
your  hands  at  the  time  of  such  deposite,  on  or  before  the  1st  of  April 
next,  I  shall  be  under,  the  disagreeable  necessity,  in  the  discharge  of  my 
duty,  to  report  your  neglect  for  the  action  of  the  Executive. 


CoLUJiBus,  April  1,  1835. 
Dear  Sir  :  Your  favor  of  the  27th  March  was  received  on  this  day. 
The  reason  why  the  returns  mentioned  in  your  communication  were  not 
made,  is  this  :  tiial  we  have  not  had  t!ie  necessary  blanks  for  that  purpose  ; 
and  also  the  interference  of  the  public  land  sales  at  this  office,  and  the 
immense  business  done  at  this  office  since  the  sales  have  closed,  are  all 
reasons  I  shall  urge  for  the  delay  of  such  returns.  I  shall  make  them  so 
soon  as  I  can  do  so. 

Respectfully,  your  obedient  servant, 

W.  P.  HARRIS,  Receiver. 


Receiver's  Office,  Cohnnbiis,  April  IS,  1835. 
Sir  :  Enclosed  you  will  receive  my  monthly  account  current  for  the 
month  of  November,  1834,  shov/ing  a  balance  of  SlOS.318  85.  You 
will  discover  that  I  have  neglected  to  give  an  account  of  the  different 
kinds  of  funds  received  that  month;  there  was  such  a  press  of  business 
during  the  months  of  November  and  December  that  I  found  it  impossible 
for  me  to  render  a  correct  statement ;  but  for  the  future  I  will  give  you  a 
correct  statement  of  the  different  kinds  of  funds  received  in  each  month. 
I  have  the  honor  to  be,  very  respectfully,  your  obedient  servant, 

'  VV.  P.  HARRIS,  Receiver. 
Hon.  Levi  Vv'^oopburv, 

Secretary  of  the  Treasury. 


Treasury  Department,  June  25,  1835. 

Sir:  Having,  in  a  communication  addressed  to  you  on  the  17th  of 
March  last,  and  on  several  prior  occasions,  urged  upon  you  the  indispen- 


172  Mep.  No.  313. 

sable  necessity  of  a  strict  attention  to  making  your  monthly  returns,  and 
finding  that  no  returns  have  been  received  from  you  since  that  for  the 
month  of  November  last,  it  becomes  my  unpleasant  duty  to  say  to  you, 
-.hat  if  those  in  arrear  are  not  transmitted  by  return  of  mail,  1  shall  be 
constrained  to  report  your  neglect  for  the  action  of  the  Executive. 

I  am.  &:c. 

LEVI  WOODBURY, 

Secretary  of  the  Treasury. 
Receiver  of  Public  MoNsr,  CohnJibus. 


Receiver's  Office, 
Columbus,  [Mississi])pi,)  July  13,  1S35. 
Sir  :  Enclosed  you  will  receive  my  monthly  account  current  for  tlie 
month  of  December,  1S34,  showing  a  balance  of  ^385,067  S3. 

The  returns  would  have  been  forwarded  you  sooner  :  but  not  having 
been  furnished  with  the  necessary  blanks,  which  we  could  not  procure 
here,  it  was  out  of  my  power. 

We  did  not  obtain  the  blanks  until  we  had  written  the  third  time. 
And,  in  addition,  the  press  of  business  has  been  very  great,  which  you 
will  discover  by  our  returns. 

Your  obedient  servant, 

W.  P.  HARRIS,  Receiver. 
Hon.  Levi  Woodbury, 

Secretary  of  the  Treasury. 


Treasury  Department,  Arigust  28,  1S3j. 
Sir  :  Agreeably  to  the  intimation  given  you  in  my  letter  of  the  20t!i 
June,  it  has  become  my  disagreeable  duty  to  report  your  continued  neg- 
lect to  the  l^resident ;  who  has  instructed  me  to  say  to  you,  that  if  the 
monthly  returns  required  from  you  by  the  regulations  of  the  Treasury, 
which  are  in  arrears,  are  not  received  at  the  Department  on  or  before  tne 
10th  of  October  next,  you  will  then  be  dismissed  from  office. 

I  am,  &:c. 

LEVI  WOODBURY, 
Wiley  P.  Harris,  Esq.,  Secretary  of  the   Treasury 

Receiver  of  Piihlic  Money,  Cohi7nbus,  Mississippi. 


Columbus,  September  14,  1835. 

Sir  :  Yours  of  the  28th  of  August  is  before  me,  in  which  you  state 
••  that  you  are  instructed  by  the  President  to  say  that  if  my  monthly  re- 
turns are  not  made  by  the  10th  October,  I  will  be  dismissed  from  office." 

All  I  can  say  in  excuse  or  extenuation  of  my  seeming  neglect  in  the 
office,  is  the  great  press  of  business,  which  will  the  more  fully  appear  by 
reference  to  the  certificati;  of  deposite.  I  have  kept  constantly  employed 
in  the  oifica  three  clerks,  and  I  do  assure  you  that  it  is  utterly  impossible 
10  keep  the  business  up,  as  more  than  that  number  cannot  be  em])loyed. 
Every  exertion  shall  be  made  to  make  out  and  forward  the  returns  as 
soon  as  possible.     I  ask  of  the  President  a  suspension  of  removal  for  a 


Rep.  No.  313.  173 

rime,  until  correct  information  be  had  with  regard  to  the  manner  in  which 
the  business  of  the  Oiiice  has  been  conducted.  You  may  be  assured,  sir. 
that  the  money  is  regularly  deposited  in  the  bank,  and  that  the  books  are 
correctly  kept,  (only  behind  from  an  excess  of  business  always  on  hand.; 
but  which  will  soon,  I  think,  diminish,  when  there  shall  be  no  cause  of  fu- 
ture complaint. 

With  respect,  I  am  your  obedient  servant, 

W.  P.  HARRIS,  Receiver. 
Hon.  Levi  Woodbury, 

Secretary  of  the  Treasurrj. 


Treasury  Department, 

September  22,  1835. 
Sir  :  Allow  me  to  inquire  why  it  is  that  your  deposites  are  not  made 
in  the  branch  of  the  Planters'  Bank  at  Columbus,  instead  of  the  parent 
bank  at  Natchez  ?     Does  the  branch  refuse  to  receive  them,  and  credit  the 
amount  at  the  mother  bank  ? 

I  am,  &c. 

LEVI  WOODBURY, 

Sccretari/  of  the  Treasury. 
Wiley  P.  Harris,  Esq., 

Receiver  of  Public  Money,  Colianbiis,  Miss. 

P.  S.  Your  return  for  the  month  of  February  last  has  been  received  to- 
day, and  shows  a  large  amount  on  hand  not  deposited ;  and  you  are  here- 
by required  (if  not  already  done)  to  deposite  any  balance  still  on  hand  in 
the  above  branch,  to  the  credit  of  the  Treasurer,  and  forward  receipts 
therefor,  in  order  to  save  time  and  expense  in  travelling  to  Natchez. 


Treasury  Department, 

September  28,  1835. 
Sir  :  I  regret  to  say  that  the  reasons  assigned  in  your  letter  of  the  14tli 
instant  for  withholding  your  monthly  returns  cannot  hereafter  be  deemed 
satisfactory.  I  can  perceive  no  sufficient  cause  for  their  being  delayed 
longer  than  the  first  week  in  each  succeeding  month,  as  there  can  be  no 
difficulty  in  ascertaining  at  once  the  amount  of  money  received  within 
the  month,  or  in  stating  the  amount  of  your  disbursements  and  deposites 
during  the  month  :  this  is  all  that  is  required  in  them.  The  object  of  these 
returns  is  to  afford  the  Department  the  earliest  information  in  regard  to 
the  money-operations  of  the  land  office,  and  the  punctual  transmission  of 
all  the  moneys  received  to  the  bank  of  deposite.  They  are,  therefore,  of 
paramount  importance,  and  cannot  be  permitted  to  await  the  completion 
of  detailed  book -entries,  or  the  perfection  of  other  business,  be  its  charac- 
ter what  it  may. 

I  am,  &c. 

LEVI  WOODBURY, 
VV.  p.  Harris,  Esq.,  Secrclai^y  of  the  Treasury. 

Receiver  of  Public  Money,  Columbus,  Miss 


174  Sep.  No.  313. 

Receiver's  Office, 
Columbus,  {Miss.,)  October  9,  1835. 
Sir  :  Enclosed  lierewith  you  have  my  monthly  accoimt  current  for  the 
month  of  Sej)tember  last,  showing  a  balance  of  ^5181.604  63,  In  answer 
to  your  letter  of  the  22d  ultimo,  containing  the  inquiry,  "  M'hy  my  [your] 
(lepo.siies  are  not  made  in  the  branch  of  the  I'laiitcr.s^  Ba)ik  at  Colum- 
bus, instead  of  in  the  parent  bank  at  Natchez?^^  permit  me  to  state,  tliat 
an  arrangement  was  made  by  me  sometime  in  December,  1S33,  or^Janu- 
ary,  1834,  with  the  parent  bank  at  Natchez,  by  which  the  cashier  of  the 
branch  at  this  place  was  directed  to  receive  my  deposiles,  and  grant  a  re- 
ceipt for  the  same  as  credited  to  the  United  States,  This  ara-angement 
existed  for  some  time,  and  was  only  terminated  by  the  positive  directions 
of  the  parent  bank  to  the  branch  here  not  to  receive  my  deposites.  They 
v/ere  then  placed  in  the  parent  bank,  at  the  sacrifice  of  much  time  and 
convenience,  until  such  time  as  I  prevailed  on  the  parent  bank  to  accept 
certificates  of  deposite  to  my  individual  credit,  instead  of  the  branch,  in 
lieu  of  the  money ;  and  on  said  certificates  liave  been,  and  are,  predicated 
tiie  certificates  of  deposite  in  the  parent  bank  to  the  credit  of  the  United 
States,  This  has  been  productive  of  much  delay,  tending  to  create  only 
regret  and  mortification  on  my  part;  for,  independently  of  the  distance 
from  this  place  to  Natchez,  (255  miles,)  the  officers  of  the  parent  bank 
have  frequently  delayed  forwarding  me  certificates  of  deposites,  until  at 
certain  periods ;  weeks  have  elapsed  before  I  have  received  a  certificate 
oi  deposite,  and  then  one,  only,  for  the  aggregate  amount  of  several  de- 
posites. It  must  be  evident,  sir,  that  such  a  mode  of  transacting  the  bu- 
smess  (the  only  one  I  can  properly  at  present  pursue)  will  frequently  show 
a  mucii  larger  balance  on  hand  than  acknowledged  to  exist.  The  certifi- 
cates are  stated  in  my  monthly  accounts  current  as  they  are  actually 
dated  and  drawn  at  the  parent  bank,  while  at  no  time  has  there  not  been 
a  large  sum  in  the  bank  in  advance  of  the  receipts  of  certificates.  The 
certificates  of  deposites  which  are  now  duo  from  the  bank  at  Natchez, 
and  which  are  expected  in  course,  will  show  but  a  small  balance  on  hand. 
1  will  take  the  liberty  to  say  that  it  will  afibrd  me  more  than  ordinary 
gratification  to  submit  my  accounts  and  the  general  business  of  the  office 
to  the  examination  of  the  usual  visiting  ascent. 


Your  obedient  servant, 

Hon.  Levi  Woodbury, 

Secretary  of  the  Treasury. 


W.  P.  HARRIS. 


Columbus,  September  15,  1S35. 

Dear  Sir  :  Many  of  the  early  and  constant  friends  of  the  administra- 
tion in  this  State  have  heard,  with  much  regret  and  sorrow,  that  the  pres- 
ent receiver  of  public  moneys  at  this  place  is  to  "coiisider  himself  dis- 
missed unless  his  returns  are  made  before  the  first  of  October." 

I  have  long  hadnhe  honor  of  an  intimate  acquaintance  with  General 
Harris,  and  I  can  freely  assure  your  excellency  that  a  more  honorable  man. 
does  not  live,  unblemished  in  all  the  relations  of  life,  and  standing  high 
in  the  estimation  of  the  public.  He  has  served  here  for  many  years  in 
the  most  responsible  and  dignified  stations,  and  no  man  enjoys  in  this 
State  a  more  diffused  and  deserved  popularity. 


Rep.  No.  313.  175 

I  am  very  well  informed  as  to  the  management  of  the  office.  I  reside 
in  the  district,  and  know  that  he  is  the  most  indefatigable  business  man 
in  the  State.  Since  he  received  the  appointment,  he  has  been  absent  but 
once,  and  then  only  for  a  few  days.  Day  and  night  he  is  there.  The 
people  speak  of  this  everywhere.  He  has  constantly  had  three,  and  now 
four,  clerks  at  work,  who,  in  my  own  knowledge,  have  been  engaged 
from  sunrise  until  ten  at  night,  and  he  cannot  obtain  them  for  less  than 
fifty  dollars  per  month.  His  receipts  must  have  been  between  twelve 
and  fourteen  hundred  thousand  dollars,  and  the  labor  for  the  ensuing  six 
months  will  be  arduous  in  the  extreme.  I  know  that  the  receiver  suffered 
under  great  inconvenience  for  two  or  three  months,  being  without  ab- 
stracts, which  were  not  obtained  from  Washington  until  he  had  written 
three  or  four  times,  and  even  then  were  much  delayed  by  the  extraordinary 
failure  of  the  mails.  ^  From  my  knowledge  of  the  business  of  the  office, 
I  do  not  think  it  possible  that  the  receiver  can  accomplish  his  returns  by 
the  first  of  October,  though  every  exertion  will  be  made,  and  has  been 
made,  to  keep  up  with  the  business.  I  have  known  the  receiver  and  his 
clerks  to  be  at  work,  time  after  time,  until  after  one  o'clock  at  night;  and 
the  Strongest  testimonials  from  the  best  and  most  influential  friends  of 
your  excellency  can  be  had  as  to  his  integrity  and  industry.  General 
Harris  has  never  engaged  in  speculation,  either  directly  or  indirectly. 

Poindexter  employed  a  vile,  unprincipled  agent  (Gibson  Wooldridge)  to 
take  testimony  at  this  office,  under  a  resolution  of  the  Senate  :  and  he  en- 
deavored to  implicate  General  Harris  and  George  W.  Martin  in  some 
transaction  of  very  minor'  importance.  If  I  had  been  examined,  I  could 
have  explained  tjie  whole  matter  to  the  entire  exoneration  of  General 
Harris;  and  I  could  have  explained  the  whole  transaction,  as  it  regards 
Colonel  Martin,  to  the  satisfaction  of  the  world.  The  fact  is,  it  w,a3  a  mis- 
erable attempt,  on  the  part  of  Poindexter,  to  strengthen  his  party  here. 
He  hates  Colonel  Martin  with  the  malignity  of  a  demon ;  and  nothing 
would  rejoice  him  more  than  the  expulsion  of  General  Harris,  whom  he 
knows  to  be  one  of  the  main  pillars  of  the  democratic  cause,  and  one  of 
the  earliest  and  most  distinguisiied  friends  of  the  adininislration  in  Missis- 
sippi. His  family  and  connexions  are  extremely  influential,  and  all  of 
them  are  co-operating  with  us  in  the  arduous  struggle  which  we  are  now 
making.  They  are  true  democrats  ;  and  the  bank,  nullifying,  and  White 
parties  would  shout  "  victory"  at  any  blow  aimed  at  them. 

We  are  now  in  the  midst  of  an  electioneering  campaign.  Governor 
Runnells,  R.  Walker,  Major  B.  W.  Edwards,  and  myself,  constitute  the 
democratic  Van  Burcn  ticket.  It  will  be  a  close  contest.  The  Nashville 
papers  circulate  extensively  through  our  State.  Much  of  our  population 
is  from  Tennessee  ;  nine-tenths  of  our  newspapers  are  for  White  ;  and 
every  bank  in  the  State,  including  the  United  States  branch,  has  taken 
commission  in  his  service.  Some  three  or  four  thousand  of  our  voters 
are  recent  emigi-ants  from  otlior  States,  and  residc_  in  the  new  counties, 
knowing  nothing  of  our  political  arrangements  ;  and,  as  we  have  no  mails 
circulating  among  them,  the  result,  as  to  them,  is  doubtful. 

With  high  respect,  I  remain  vonr  excellency's  most  obedient  servant, 

JOHN  F.  H.  CLAIBORNE. 

To  His  Excellency  the  President 

of  the  United  States. 


176  Rep.  No.  313. 

Columbus,  (Miss.,)  September  14,  1S35. 

Sir  :  General  Wiley  P.  Harris,  Ihe  receiver  of  public  moneys  at  this 
place,  has  shown  me  Ihc  letter  of  the  honorable  Levi  Woodbury  to  him 
of  the  2Sth  of  August.  In  that  letter,  he  is  required,  as  such  receiver,  to 
have  the  arrears  of  his  monthly  returns  made  to  the  Treasury  Department 
by  the  10th  of  October  next ;  and  he  is  informed  that,  in  case  the  same 
sliouid  not  be  done  by  that  time,  he  will  be  dismissed  from  office. 

In  troubling  you  with  this  letter,  I  have  felt  considerable  diffidence,' 
arising  from  your  not  having  now  more  than  an  introductory  acquaintance 
with  me  ;  if,  indeed,  you  should  now  recollect  that  acquaintance. 

Were  Congress  now  in  session,  that  diffidence  would  be  greatly  abated, 
as  I  could  refer  you  to  several  of  the  Tennessee  delegation,  with  those 
from  this  State,  who  are  well  acquainted  with  me,  and  who  would,  I  doubt 
not,  unite  in  bearing  testimony  that  I  would  be  incapable  of  making  mis- 
representations to  you. 

Having  had  considerable  knowledge  of  the  business  done  in  the  land 
office  here,  and  of  the  attention  and  industry  with  which  its  duties  have 
been  discharged,  I  have  been  requested  by  General  Harris  to  say  to  you 
what  I  may  know  on  the  subject. 

The  amount  of  money  reported  by  the  receiver  to  the  Treasury  Depart- 
ment, arising  from  the  sales  of  public  lands  at  this  office,  will  satisfactorily 
indicate  to  you  the  unprecedented  amount  of  public  lands  sold  here  within 
a  limited  time  past. 

The  greatly-increased  labors  called  for  by  the  operation  of  the  late  pre- 
emption laws  will,  I  am  persuaded,  suggest  themselves  to  your  considera- 
tion. 

The  Department  must  needs  be  satislied  with  the  prompt  and  faithful 
accounting  for  the  public  money,  as  duplicate  certificates  of  deposite  in  the 
Planters'  Bank  are  generally  obtained  semi-weekly,  and  forwarded. 

I  know  that  General  Harris  has  generally  had  three  clerks  employed  in 
the  office:  and  such,  indeed,  has  been  the  press  and  quantity  of  business 
on  hand,  that  he  and  they  have  been  frequently  engaged  until  10  or  11 
o'clock  at  night. 

The  utmost  active  and  indefatigable  labors  will  be  immediately  put  in 
requisition,  with  the  employment  of  additional  clerks,  until  the  desired  re- 
turns shall  be  completed  and  forwarded ;  and  it  is  confidently  believed 
that  the  great  amount  of  business  these  returns  will  show,  will  furnisJi,  of 
itself,  a  satisfactory  excuse  for  the  otherwise  seeming  delays. 

It  is  in  unison  with  the  prevailing  sentiment  now,  to  say  that  the  re- 
ceiver's office  at  this  place  is  faithfully,  attentively,  industriously,  and  ably 
conducted ;  and  it  is  hoped  that  General  Harris's  dismissal  from  office 
may  be  suspended  until  he  can  make  out  the  returns  ;  and  it  is  confidently 
believed  that  they  will  contain  within  themselves  a  highly  satisfactory 
excuse  for  the  complained-of  delay  of  the  monthly  returns. 

I  have  the  honor  to  be,  with  great  regard,  your  obedient  servant, 

STEPHEN  COCKE. 

His  Excellency  Andrew  Jackson, 

President  of  the  United  States. 


Rep.  No.  313.  177 

Columbus,  (Miss.,)  October  10,  1835. 

Sir  :  I  have  the  honor  to  report  that  Wiley  P.  Harris,  Esq.,  re- 
ceiver of  public  moneys  at  Cokimbiis,  has  not  complied  with  the  require- 
ments of  your  letter  of  the  2Sth  August;  and  that  his  returns  for  May, 
.June,  July,  August,  and  September,  are  in  arrears.  According  to  his 
return  for  April,  there  was  on  hand  the  sum  of  ^211,059  03  on  the  30th 
of  that  month;  yet  his  succeeding  deposites,  made  on  the  9th  and  11th 
May,  were  no  more  than  ^140,000;  when,  according  to  the  regulations, 
the  whole  sum  should  have  been  deposited.  His  previous  deposites, 
made  in  January,  February,  March,  and  April,  are  all  very  far  short  of 
the  money  on  hand  at  the  end  of  the  previous  month. 

The  Department  is  advised  of  deposites  made  dnring  the  period  for 
which  his  returns  are  in  arrears,  amounting  to  the  sum  of  ^450,000  ;  but, 
in  the  absence  of  any  knowledge  of  the  receipts  of  the  land  office  at  the 
period  of  the  several  deposites,  it  cannot  be  ascertained  whether  the 
amount  deposited  at  the  respective  dates  embraced  all  the  moneys  on 
hand  or  not. 

Respectfully  submitted : 

J.  ,McG.,  Clerk. 

Hon.  Secretary  of  the  Treasury. 

P.  S.  Mr.  Harris's  letter,  with  letters  from  Messrs.  Cocke  and  Clai- 
borne, are  enclosed. 


Treasury  Department,  October  12,  1835. 

Sir  :  Trusting  to  the  assurances  given  in  your  letter  of  the  14th  ultimo, 
and  to  those  of  your  friends,  made  in  your  behalf,  the  President  has  con- 
sented, upon  the  facts  now  before  him,  to  continue  you  in  office  until  the 
12th  November  proximo ;  then,  unless  your  monthly  returns  are  all  ren- 
dered, and  satisfactory  evidence  that  the  whole  of  the  public  moneys  with 
which  you  are  chargeable  are  deposited,  you  must  be  removed  from  of- 
fice, iiowevcr  painfnl  to  both  him  and  this  Department. 
I  am,  &.C. 

LEVI  WOODBURY, 

Secretary  of  the  Treasury. 
W.  P.  Harris,  Esq., 

Receiver  of  Public  Money,  Columbus,  Mississippi. 


Treasury  Department,  October  26,  1835. 
Sir  :  I  have  to  observe,  in  reply  to  your  letter  of  the  9th  instant,  tliat 
the  allowance  authorized  by  the  regulations  of  the  Department,  as  a  com- 
pensation for  travelling  expenses,  and  risk  in  the  transmission  of  the  pub- 
lic moneys  to  the  bank  of  deposite,can  only  be  made  when  such  expenses 
and  risk  have  actually  been  incurred,  and  not  in  any  case  where  both  are 
avoided  by  means  of  the  facilities  afforded  by  the  mail  or  deposite  banks, 
^loreover,  inasmuch  as  the  branch  bank  of  Columbus  receives  and  credits 
the  moneys  received  by  you  in  the  first  instance,  I  can  perceive  no  reason 
why  each  deposite  in  past  months  should  not  have  embraced  the  whole 


178  Rep.  No.  313. 

amount  in  your  possession  at  the  time  of  such  deposite,  as  the  instruc- 
tions require. 

1  am,  &c. 

LEVI  WOODBURY, 

Secretary  of  the  Treasuri/. 
W.  P.  Harris,  Esq., 

Receiver  of  Public  Money.  CoIumbu<. 


Treasury  Department,  November  28,  1835. 
Sir:  Your  letter  of  the  11th  instant,  and  return  for  the  month  of  Oc- 
tober, are  received.  As  your  deposites  of  pubHc  moneys  are  made  at  Co- 
himbus,  no  reason  whatever  can  be  seen  why  the  whole  money  jn  your 
hands  at  the  end  of  tlie  month  is  not  deposited;  it  is  expected  that  it 
Avill  be  hereafter. 

I  am.  &c. 

LEVI  WOODBURY. 

Secretary  of  the   Treasury. 
W\  P.  Harris,  Esq., 

Receiver  of  Public  Money,  Columbits,  Mississippi. 


Treasury  Department, 

I  February  4,  1836. 
Sir:  Your  returns  for  the  months  of  October,  November,  and  Decem- 
ber, have  not  been  received.  I  regret  that  there  should  be  any  occasion 
to  notice  the  neglect  or  accident,  (as  the  case  may  be,)  in  this  important 
duty  ;  and  avail  myself  of  the  occasion  to  inform  you  that,  unless  your  fu- 
ture returns  are  received  at  the  Department  within  the  month  next  suc- 
ceedhig  that  for  which  the  return  is  rendered,  it  will  place  me  under  the 
disagreeable  necessity  of  reporting  the  fact  to  the  Executive,  in  order  to 
comply  with  the  general  rule  in  this  class  of  cases. 

I  am,  &.C., 

LEVI  WOODBURY, 

Secretary  of  the  Treasury. 
To  Receivers  at  Palmyra,  {Missnari,)  October,  November,  and  De- 
cember;  Rdwardsville,  {Illinois,)  November  a7id December ;  Qnincy. 
{Illinois,)  November  and  December ;  Shawneetotvn,  {Illinois.)  Octo- 
ber, Noretnber,  and  December ;  Cahaba,  {Alabama.)  November  and 
December ;  St.  Stephen's,  {Alabama,)  November  and  December  : 
Columbus,  {Mississippi,)  November  and  December  ;  Mount  Salus. 
{Mississippi,)  November  and  December  :  Helena,  {,'lrkansas,)  De- 
cember ;  fVashington,{Arka7isas,)  December;  Zanesville,  {Ohio,) 
December;  Vincomes,  {Inditnia.)  Decetnbcr ;  Chicai^o,  {Illinois.) 
December;  Galena,  {Illinois,)  December ;  Vandalia,  {Illinois,) 
December  ;  Tuscaloosa,  {Alabama,)  December  ;  Augusta,  {Missis- 
sippi,) Decem,ber  ;  Chocchicma,  {Mississippi.)  Dcce7nber ;  New  Or- 
leans ;  Ouachita,  and  St.  Helena,  {Louisiana.)  December;  Green 
Bay,  {Michigan,)  December  ;  Batesville,  {Arkansas,)  December. 


Hep.  No.   313.  179 

Columbus,  Fehrvary  27,  1836, 
Sir  :  Yours  of  the  4th  instant  came  to  hand  this  morning.  I  can  say, 
sir,  in  answer,  that  my  return  for  the  month  of  November  was  ready 
to  forward  on  the  15th  of  December  last;  but,  several  small  errors, 
of  v/hich  I  imve  notified  the  Department,  in  the  returns,  which  1  for- 
warded without  comparing  witli  the  register's  books,  induced  me  to  wait 
until  the  register's  books  were  brought  up,  m  order  that  my  books  should 
be  correct.  The  register's  register  of  certificates  is  ready  this  morning; 
an(i  I  will  compare  my  return  for  November,  nnd  immediately  forward 
il.  The  return  for  the  month  of  December  will  be  ready  and  forwarded 
in  a  few  days.  The  public  money  has  been  deposited,  and  certificates  for- 
warded regularly.  I  can  assure  you,  sir,  that  my  returns  are  not  delayed 
through  my  negligence.  I  will  forward  them  for  the  future  without  wliit- 
ing  to  compare  with  the  register,  unless  otherwise  directed. 
I  am,  sir,  yours,  very  respectfullv, 

W.  P.  HARRIS,  Receiver. 
Hon.  Levi  WoOdbury, 

Secretary  of  Ihe  Treasurij. 


Columbus,  (Miss.,)  March  13,  183G. 
Sir  :  Enclo.sed  you  will  receive  my  monthly  account  current  for  the 
month  of  November,  1S35,  showing  a  balance  of  four  hundred  and  sixty-six 
thousand  four  hundred  and  ten  dollars  and  fifty-nine  cents.  (S466,410  59.) 
The  returns  for  the  months  of  December,  January,  and  February,  will  be 
forwarded  in  ten  or  t\yelve  days. 

1  am,  sir,  very  respectfully,  your  obedient  servant, 

W.  P.  HxlRRIS,  Receiver. 
Hon.  Levi  Woodbury, 

Secretary  of  the  Treasury. 


Treasury  Department, 

March  28,  1836. 
Sir:  Your  letter  of  the  iSth  instant,  enclosing  your  return  for  the 
month  of  November,  is  received.  Again  it  becomes  my  unpleasant  duty 
to  complain  of  your  neglect  in  this  respect,  and  to  inform  you  that  the 
omission  to  transmit  the  required  monthly  suitements  for  a  whole  quarter 
after  they  are  due,  cannot  be  permitted  in  any  public  oliicer  ;  and  especi- 
ally after  having  been  heretotbre  so  often  reminded  of  the  consequences 
of  such  neglect.  On  the  return  of  the  mail,  therefore,  if  the  usual  state- 
ments for  the  other  months  in  arrear  are  not  received,  1  shall  be  under  the 
disagreeable  necessity  of  again  submitting  the  subject  to  the  President,  for 
his  immediate  action. 

I  am,  &.C., 

LEVI  W00DJ31TRV, 

Secretary  of  the  Treasury. 
W.  P.  Harris,  Esq., 

Receiver  of  Public  Money,  Coluvibus,  Mississippi. 


180  Rep.  No.  313. 

Receiver's  Office. 
Columbus,  {Miss.,)  April  25,  1836. 
Sir:  Yours  of  the  2Sth  ultimo,  complaining  of  my  monthly  returns  not 
having  been  forwarded,  came  to  hand.  And  I  now  have  the  pleasure  of 
informing  you  that  my  monthly  return  for  December  was  mailed  2Sth  of 
March  ;  that  for  January  was  mailed  4th  of  April ;  that  for  February  on 
the  1 1th  of  April ;  and  the  last,  for  March,  was  mailed  the  18th  of  April ; 
all  of  which  you  have  received,  no  doubt,  ere  this. 

Respectfully,  yours, 

W.  P.  HARRIS,  Receiver. 
Hon.  Levi  Woodburv, 

Secretary  of  the  Treasury. 


Receiver's  Office, 
Columbus,  (Miss.,)  May  23,  1S36. 
Sir  :  Herewith  enclosed  you  will  please  find  my  monthly  account  cur- 
rent for  the  month  of  April  last,  showing  a  balance  of  one  hunch-ed  and 
twenty-eight  thousand  five  hundred  and  eighty-four  dollars  and  seventy 
cents,'(S^128,584  70.) 

I  am,  very  respectfully,  your  obedient  servant, 

W.  P.  HARRIS,  Receiver. 
Hon.  Levi  Woodbury, 

Secretary  of  the  Treasury. 


Treasury  Department,  June  6,  1836. 
Sir  :  Your  letter  of  the  23d  ultimo,  accompanied  by  your  returns  for 
the  month  of  April,  is  received.  Seeing  the  balance  of  public  moneys  in 
3'our  hands  amounted  to  Si  28,584  70  at  the  end  of  that  month,  I  have  to 
request  that  you  will  explain  why  it  was  that  the  whole  of  the  public 
moneys  in  your  hands  on  the  last  of  the  previous  month  was  not  deposited, 
instead  of  a  part,  in  conformity  to  explicit  and  frequent  instructions  on 
that  point.    It  is  painful  to  be  obliged  to  ask  you  so  often  for  explanations. 

I  am,  &c. 

LEVI  WOODBURY, 

Secretary  of  the  Treasury. 
Receiver  of  Public  Money, 

Columbus,  Mississippi. 


Receiver's  Office, 

Columbus,  {Miss.,)  June  27,  1S36. 

Sir  :  Your  favor  of  June  6  is  received,  in  which  you  complain  of  the 

amount  of  funds  in  my  hands.     I  will  inform  you  that  I  make  my^de- 

posites  in  the   branch  bank  at  this  place,  weekly,  which  you  will  observe 

from  the  letter  I  send  you  from  the  cashier.     It  is  altogether  owing  to 


Hep.  No.  313.  181 

the  irregularity  of  the  mails  that  I  am  unable  to  receiv^c  the  certificates  of 
depositc  from  Natchez.  And  I  shall  now  be  under  the  necessity  of  send- 
ing an  agent  there  for  the  especial  purpose  of  obtaining  the  certificates. 
This  is  produced  by  the  high  water  between  here  and  Natchez,  which  at 
this  time  renders  the  roads  almost  impassable. 
Yours,  respectfully, 


Hon.  Levi  Woodbury, 

Seoetai'y  of  the  Treasury. 


VV.  P.  HARRIS,  Receiver. 


Office  Planters'  Bank, 

Columbus,  Jane  22,  1836. 
Sir  :  By  the  request  of  W.  P.  Harris,  Esq.,  receiver  of  public  moneys 
at  this  place,  I  would  state  that  he  has  regularly  made  his  deposites  in 
this  office,  and  obtained  from  us  from  three  to  four  certificates  monthly. 
I  would  farther  observe,  that  so  far  as  my  knowledge  of  the  nianasemenv 
of  his  oflice  extends,  it  has  been  conducted  with  perfect  propriety,  and  a 
strict  regard  to  the  interests  of  the  Government. 
Very  respectfully, 

W.  B.  WINSTON,  Cashier. 
lion.  Levi  Woodeury,1 

Secretary  of  the  Treasury. 


Columbus,  (Miss.,)  ^iugusi  27,  1S36. 

Dear  Sir:  In  obedience  to  a  circular  from  the  Commissioner  of  the 
General  Land  Office,  under  date  of  the  25th  May  last,  requiring  me,  as 
receiver  of  the  land  office  at  Columbus,  to  execute  a  new  bond  in  the 
penalty  of  ^200,000,  I  did  sign  the  bond  enclosed  to  me  by  the  Depart - 
snent,  and  have  procured  the  signatures  of  nine  different  gentlerren. 
who,  I  presume,  would  be  deemed  amply  sufficient  sureties  for  a  greater 
sum  than  that  required  in  tlie  bond  ;  but,  after  procuring  this  security, 
some  facts  have  come  to  my  knowledge  which  have  induced  me  to  adopt 
a  different  course.  You  are  aware  that  complaints  have  from  time  to  time 
been  made  by  the  Department,  on  account  of  the  tardiness  of  some  of  my 
official  returns,  and  of  the  deficit  of  the  returns  of  moneys  whicii  they  ex- 
hibited. The  immense  amount  and  press  of  business  which  have  con- 
stantly existed  in  this  office  since  its  establishment  were  the  av^ologies 
which  1  had  to  offer  lor  my  apparent  delay  and  dereliction,  and  which  I 
then  believed  would  be  fully  rectified  so  soon  as  the  business  of  the  office 
would  admit  of  more  leisure  and  minute  examination.  Tiiis  examination 
has  been  recently  made  by  me  ;  and  although  I  have  taken  upon  myself 
to  send  an  agent  to  Natchez  to  examine  my  bank  account  particularly, 
and  have  made  a  pretty  thorough  examination  of  my  own  accounts  and 
official  papers,  I  regret  to  say  that  I  still  find  that  there  is  a  deficit  against 
me,  whicli  as  yet  I  am  unable  to  account  for. 

Under  these  circumstances,  I  feel  that  the  only  alternative  left,  and  i\M 


182  Rep.  No.  313. 

one  wliich  my  duty  towards  you  and  the  public  for  whom  1  act  requires, 
is  to  tender  to  you  my  resignation  as  receiver  ol'  the  land  office  at  Columbus, 
Mississippi.  1  I'eel  assured,  from  former  demonstrations  of  your  kindness 
towards  me,  that  1  have  heretofore  enjoyed  your  conlidence;  and  I  regret 
that  any  circumstances  should  have  occurred  calculated  in  the  least  to 
impair  that  confidence.  I  however  trust  and  believe  that  I  will  yet  be 
able  to  explain  the  whole  matter  satisfactorily,  and  that  neither  the  public 
nor  my  friends  will  sustain  any  loss  tliereby.  I  wish  my  resignation  to 
take  eflcct  from  and  after  the  last  day  of  the  present  month,  (August,)  at 
which  time  I  shall,  in  anticipation,  close  up  the  business  of  the  otfice. 

In  conckision,  I  will  take  the  liberty  of  recommending  to  you  for  ap- 
pointment as  my  successor,  Colonel  Gordon  D.  Boyd,  of  Attala  county. 
You  are  probably  acquainted  with  his  public  character,  as  he  has  been 
for  several  years  a  prominent  member  of  our  State  Legislature,  and  has 
been  throughout  an  ardent  supporter  of  your  administration,  and  an  un- 
yielding advocate  of  the  principles  of  democracy.  This  request^is  made 
in  his  behalf,  in  ])art,  on  my  own  account.  As  he  is  my  warm  personal 
friend,  he  will  willingly  alford  me  every  facility  in  his  power  to  trace  out 
and  explain  any  errors  which  may  have  occurred  while  the  office  was 
under  my  charge.  His  capability  to  manage  the  office  I  think  unques- 
tionable;  and  it  is  only  at  my  suggestion  that  he  consented  to  my  placing 
his  name  before  you,  and  will  most  probably  make  no  application  through 
any  other  medium.  In  conclusion,  permit  me  to  express  to  you  assurances 
of  my  high  consideration  and  esteem. 

Respectfully,  yours,  &c. 

W.  P.  HARRIS. 

Andre vv  Jackson, 

President  of  the  United  States. 

Endorsorncnt  in  the  handwriting  of  the  President. 

"  Referred  to  the  Secretary  of  the  Treasury.  The  within  resignation 
cannot  be  accepted  until  he  settles  up  his  accoinits.  If  necessary,  he  can 
be  suspended  or  removed. — A.  J." 


Tkeasuuy  Departmen  r, 

September  21,  ISSfJ. 
SiK :  Your  letter  of  the  27th  ultimo,  addressed  to  the  President,  has 
been  rcferrcid  to  this  office.  Your  duties  as  receiver  will,  of  course,  have 
ceased,  or  been  suspended,  after  tlie  3 1st  ultimo,  the  time  wheti  you  pro- 
pose your  resignation  should  take  cflect.  Immediate  steps,  it  is  hoped,  will 
be  taken  to  adjust  your  accoinits  and  pay  over  the  balance.  Soon  as  the 
President  returns,  a  further  communication  will  be  made  to  you. 

I  am,  tSs:r. 

LEVI  VrOODBURY. 
Secret (iru  of  the  Treasury. 
W.  P.  JIaukis,  Es(j., 

Colli rnbus,  Mississippi. 


Rep.  No.  313.  183 

[The  letter  to  the  President  by  Harris,  and  referred  to  tliis  office,  with  the 
endorsement  thereon,  reached  it  on  the  21st  of  September,  1S36  ;  and,  on 
the  same  day,  measures  were  ordertHl  to  be  taken  to  secure  and  collect 
what  was  due  from  him,  and  he  notified  that  he  was  suspended  from  ot- 
iice  ;  and  the  register  was  also  notified  of  the  fact,  as  appears  by  the  an- 
nexed lette-rs.  On  the  President's  return  to  the  city,  (October  3,)  a  succes- 
sor was  appointed. — L.  W.] 


Tkeasury  Department, 

September  21,  1836. 
Sir  :  I  would  remind  you  of  the  necessity  of  ascertaining  the  balance 
due  by  >rr.  Harris,  receiver  at  Columbus,  as  soon  as  practicable,  and  of 
taking  measures  to  secure  and  collect  the  same  ;  as  he  has  been  notified 
that  his  duties  as  receiver  ceased  after  the  31st  ultimo. 
I  am,  respectfully,  &c. 

LEVI  WOODBURY, 

Secretary  of  the  Treasury. 
To  the  Commissioner 

of  the  General  Land  Office. 


Trkasury  Department, 

September  21,  183(3. 
Sir  :  I  transmit,  for  yonr  information,  a  copy  of  a  letter  addressed  to 
W.  P.  Harris,  Esq.     Upon  the  return  of  the  President  a  successor  will  be 
appointed. 

I  am,  respectfully,  sir,  &c. 

LEVI  WOODBURY, 

Secretary  of  the  Treasury. 
William   Downing,  Esq., 

Register  Land  Offce,  Columbus,  Miss. 


CoLUJiBUs,  (Miss.,)  November  1,  1S3G. 
Dbar  Sir  :  I  write  for  the  purpose  of  advising  you  as  to  my  situation 
in  regard  to  my  late  connexion  w^ith  the  land  office  in  this  place.  The 
state  of  my  health  has  been  such,  of  late,  that  I  have  not  been  able  to  ex- 
amine into  my  ofFice-account ;  and  as  I  feel  that  the  prospect  of  its 
improvement  is  extremely  doubtful,  I  am  preparing  to  remove  immedi- 
ately to  Brandon,  near  the  seat  of  Government  in  this  State.  I  have, 
however,  engaged  the  service  of  Mr.  Robert  E.  Harris,  my  nejiliew,  who 
was  engaged  for  some  time  with  me  as  a  clerk,  who,  together  with  my  suc- 
cessor hi  odice,  has  kindly  proffered  his  assistance,  will  make  a  thorough 
examination,  and,  if  possible,  trace  out  the  error,  or  ascertain  why  it  is 
that  I  appear  to  be  so  much  in  arrear.  In  the  mean  time,  however,  I  am 
preparing  Ibr  the  worst,  by  selling  off,  on  credit  for  bankable  ])aper,  all 
my  property,  which  I  can  make  more  than  sufficient  to  meet  the  deficit. 


184  Ifep.  No.  313. 

should  an  indulgence  be  extended  to  me  which  will  enable  me  to  cany 
my  views  into  eli'oct.  1  beg  to  request  of  you  that  you  will  not  commence 
suit  or  any  action  upon  my  othcial  bond  until,  if  necessary,  I  can  make 
an  application  to  Congress  to  extend  to  me  the  necessary  indulgence,  as 
it  is  nnpossible  for  me  to  sell  njy  property  for  cash.  A  coercive  and  rigid 
course  towards  me  would  not  only  have  the  eft'ect  of  taking  from  me  tlie 
means  of  doing  justice,  but  occasion  a  loss  to  the  Government  which  it 
would  not  otherwise  sustain.  I  can  assure  this  much,  that  if  I  am  in  arrears 
to  any  thing  near  the  amount  which  the  account  shows  against  me,  I  have 
not  used  it,  or  derived  any  benefit  therefrom  ;  but  it  is  so  much  actual  loss, 
which  is  as  yet  to  me  unaccountable.  Throughout  my  life  I  have 
endeavored  to  act  justly  and  correctly  towards  others ;  and  I  feel  just  as  little 
disposed  to  act  ditferently  towards  the  Government,  whose  officers  have 
reposed  confidence  in  me  ;  and  I  now  assure  you  tliat  all  my  effects  are 
ready  to  be  given  up  to  satisfy  its  just  demands,  in  whatever  manner  may 
be  required  of  me.  As  no  possible  good  can  result  from  a  rigid  course 
towards  mc,  but,  on  the  contrary,  the  consequence  might  be  the  impov- 
erishment of  my  family  as  well  as  loss  to  the  public,  I  do  hope  that,  if 
consistent  with  your  official  duty  you  can,  you  will  take  no  steps  until  it 
may  be  seen  whether  Congress  will  grant  to  me  any  indulgence.  I  re- 
spectfully request  an  answer  to  this  communication. 

I  have  the  honor  to  be,  very  respectfully,  vour  obedient  servant, 

W.  P.  HARRIS. 
Hon.  Levi  Woodburv, 

Secretary  of  the  Treasury. 


Treasury  Department,  Nov'r  19,  1830. 
Sir  :  I  have  received  your  letter  of  the  1st  instant,  by  the  mail  of  this 
mornir;g;  and  regret  to  inform  you  that,  as  long  ago  as  August  last,  steps 
were  taken  by  the  Solicitor  of  the  Treasury  to  attempt  to  secure  the  bal- 
ance due  from  you. 


I  am,  &c. 


W.  P.  Harris,  Esq., 

Colli  771  bns,  Mississipp i. 


LEVI  WOODBURY, 

Secretary  of  the  Treasu7'y. 


[Balance  due  from  Mr.  Harris,  one  hundred  and  nine  thousand  one 
liundred  and  seventy-eight  dollars  and  eight  cents,  (55109,178  08.)  See  state- 
ment.] 


6. — Corrcspo7idence  with  G.  I).  Boyd,  receiver  at  Colu77ibus. 

Receiver's  Office, 
Cohnnbus,  {Mississippi^)  JJec'r  9,  183<). 
Sir  :  I  have  lately  received,  in  payment  for  lands  entered  at  this  office, 
a  number  of  the  receipts  of  the  Treasurer  of  the  United  States  for  money 
deposited  by  the  holders  ol  (hem.     1  liave  been  in  the  habit  of  receiving 


Eep.  No.  313.  185 

them  as  money,  and  giving  out  my  own  receipts,  as  in  other  cases  for 
money  actually  paid  to  me.  ll\)on  the  examination  of  the  law,  however, 
I  liave  doubts  whether  I  ought  to  receive  them  in  tliis  way,  as  the  law 
seems  to  require  that  tlic  holders  of  them  shall  produce  such  receipts  to 
the  register  of  the  land  office,  and  has  no  other  directory  provisions.  I 
therefore  request  to  be  advised  upon  this  subject. 
Respectfully,  your  obedient  servant, 

G.  D.  J30YD,  Receiver. 
Hon.  Levi  Woodbury, 

Secretary  of  the  Treasury. 


TKKAsuuy  Department,  />cV  26,  1836, 
Sir  :  In  reply  to  tiie  inquiry  made  in  your  letter  of  the  7th  instant,  I 
would  respectfully  refer  you  to  the  enclosed  circular,  I  embrace  the  oc- 
casion to  call  your  attention  to  the  necessity  of  making  your  monthly 
returns  to  .this  office  as  soon  after  the  expiration  of  each  month  as  prac- 
ticable. 

I  am,  &c. 

LEVI  WOODBURY, 

Secretary  of  the  Treasury. 
G.  D.  BovD,  Esq., 

Receiver  of  Public  Money,  Columbus,  Miss. 


XORTIIEASTERN  LaNU  DlSTRICT, 

Columbus,  {Miss.,)  January  21,  1837, 
Dear  Sir  :  1  herewith  enclose  to  you  a  certificate  of  the  cashier  of  the 
Planters'  Bank  in  Natchez  for  the  sum  of  eighty-six  thousand  five  him- 
dred  and  ninety-three  dollars  and  forty-six  cents,  deposited  by  me  to  the 
credit  of  the  Treasurer  of  the  United  States,  In  explanation  of  the  delay 
of  our  monthly  returns  for  the  month  of  December,  I  will  mention  that 
.some  time  since  I  had  them  in  reathness,  but,  in  consequence  of  what  the 
register  informed  me  would  be  considered  as  objectionable  in  them,  I  have 
retained  them  for  correction.  The  errors  arose  from  the  fact,  that,  at  the 
opening  of  this  office,  on  the  1st  December,  owing  to  the  great  press  of 
business,  I  permitted  (with  the  consent  of  those  who  resided  in  this  vicin- 
ity) those  who  lived  at  a  greater  distance  to  pay  out  their  receipts  first, 
and  dated  each  on  the  day  on  which  it  was  actually  paid  out ;  in  conse- 
quence of  which,  some  of  the  higher  numbers  were  dated  earlier  thaa 
those  which  preceded  them.  I  shall,  however,  have  both  my  monthly 
and  quarterly  accounts  ending  with  the  month  of  December  in  readiness 
in  a  very  few  days. 

Very  respectfully,  yours,  &c. 

G,  D.  BOYD, 
Hon.  Levi  Woodbury,  Receiver  of  Public  Moneys. 

Secretary  of  the  Treasury. 

13 


186  Rep.  No.  313. 

Treasury  Department,  February  18,  1837. 
Sis:  Your  letter  oi'  the  29th  ultimo,  respecting  the  manner  scrip  is  to 
be  assigned,  has  been  received.  The  fourth  section  of  the  act  of  30th 
May,  1830,  provides  that  assignments  shall  be  by  ent/orte?nent  thereon,, 
attested  by  two  witnesses.  W!;ere  genuine  sciip  is  presented,  endorsed 
as  rnjuired,  and  you  have  no  reason  to  suspect  the  same  to  have  been 
forged,  there  can  be  no  objection  to  your  receiving  the  scrip ;  but  you 
have,  in  all  such  cases,  to  act  on  your  judgment,  as  your  accounts  can  be 
credited  with  that  only  which  is  regularly  transferred  to  the  individual 
asking  it.  It  is  not  necessary  the  assignment  should  be  made  in  your 
presence.  I  am,  &c. 

LEVI  WOODBURY, 
Secret cn'y  of  t lie  Treasury. 
Receiver  of  Public  Money, 

Colutnbus,  Mississippi. 


Treasury  Department,  y/oy  25,  1837. 
Sir:    I  regret  to  be  under  the  necessity  of  complaining  of  your  neg- 
lect to  transmit  your  return  for  the  month  of  March  last,  and  of  remind- 
ing you  that  greater  strictness  must  be  observed  in  the  performance  of 
this  duty.  I  am,  &c. 

LEVI  WOODBURY, 
Secretory  of  t fie  Treasury. 
To  Receivers  ok  Ptklic  Money: 

Kaskaskid,  I/tinois,  (March  and  ,lpril.) 

Colarnbus.  Mississippi. 

Mount  Salus,  Miss.,  (February  and  March.) 


Treasury  Department,  t/^/z/ie  10,  1837. 
Sir  :  In  consequence  of  your  neglect  to  render  your  monthly  return, 
and  pay  over  the  public  moneys,  as  required  by  law  and  the  instructions 
of  the  Departnjent,  and  the  further  omission  to  execute  your  otlicial 
bonds  in  perfect  form,  the  President  has  directed  that  the  sales  of  public 
lands  within  your  district  be  temporarily  suspended  until  your  compli- 
ance with  the  duties  imposed  on  you,  or  such  other  steps  as  the  facts  may 
justify.  The  register  has  been  instructed  accordingly.  Under  these  cir- 
"cumstancps,  I  have  to  rofpiire  that  a  bond  be  renewed,  in  the  form  re- 
quired by  the  Connnissioner  of  the  Land  Oilice,  and  that  your  returns  be 
promptly  rendered ;  and  that  the  whole  amount  of  public  moneys  ia 
your  hands  be  specially  deposited  to  the  credit  of  the  Treasurer  of  the 
United  States,  in  the  Planters'  Bank  at  Natchez,  and  evidence  thereof 
transmitted  here  without  delay, 

I  am,  &c. 


Receiver  of  Pirlic  Money, 

Columbus,  Mississippi. 


LEVI  WOODBURY, 

Secretary  of  t lie  Treasury. 


Rop.  No.   313.  187 

Receiver's  Office,  N.  E..  Land  Office, 

Columbuft,  [Mississippi,)  July  24, 1837. 
Deak  Sir:  Your  cominunicaliou  of  the  10th  Jane  ultimo,  in  conse- 
quence of  my  absence,  has  just  been  received.  From  the  circumstance 
of  Mr.  V.  M.  Gareschc,  who  presented  to  the  register  and  myself  his 
testimonials  showing  he  was  authorized  by  your  Department  to  make 
particular  examination  into  the  affairs  of  this  office,  having  been  here, 
and  my  having  made  to  him  a  full  disclosure  of  its  situalion,  and  of  mine 
in  connexion  with  it,  I  did  not  deem  it  necessary  for  me  to  communicate 
with  the  Department  at  present.  I  had  already  anticipated  the  order 
to  suspend,  the  sale  of  land  at  this  office,  by  ceasing  to  receive  any  money. 
So  soon  as  I  was  ndvised  of  the  defect  of  my  official  bond,  I  authorized 
Mr.  Gare-sche  to  inform  the  Department  that  it  was  my  intention,  as 
soon  as  I  could  conveniently,  to  see  my  former  sureties,  (some  of  whom 
were  distant  from  liere,)  and  obtain  their  signatures  to  the  new  bond.  I 
have  now  obtained  the  names  of  all,  except  one,  who  was  on  the  bond 
before  forwarded  ;  and  his  I  have  not  yet  obtained,  in  consequence  of 
his  absence,  travelling  through  the  State.  So  soon,  however,  as  I  can 
learn  where  he  is,  I  will  immediately  attend  to  it.  I  was  anxious  to  ob- 
tain the  names  of  those  who  were  on  my  first  bond.)  to  whom  I  had 
made  an  explanation  of  my  ailairs.)  in  preference  to  any  others,  in  order 
to  show  to  tiie  Department  that  my  friends  here,  and  those  who  knew 
my  business  best,  still  have  confidence.  The  truth  is,  I  am  in  delault;  a 
circumstance  which  has  orieinated  from  my  reposing  too  great  confidence 
in  otiiers.  I  am,  however,  prepared  and  determined  to  secure  the  Gov- 
ernment against  loss,  not  only  by  a  sufficient  bond,  but  also  secure  it  and 
my  friends  by  an  unconditional  surrender  of  the  whole  of  my  property, 
whenever  it  may  be  required.  The  returns,  in  arrears,  I  will  make  out 
immediately  ;  and  liope,  also,  very  soon  to  have  it  in  my  power  to  send 
the  evidences  of  the  deposite  of  the  balance  of  the  public  moneys  in  my 
hands.  It  is  also  my  intention,  so  soon  as  I  can  properly  arrange  these 
things,  to  forward  my  resignation.  In  the  mean  time,  however,  I  shall 
endeavor  to  properly  execute  my  olFicial  duties,  or  make  any  further 
communication  whicli  may  bo  required  of  me. 

I  am,  very  respect  fully,  your  obedient  servant. 

G.  D.  BOYD,  Receiver:  ' 
Hon.  Levi  WooBinniv, 

Secrctarij  of  the  Treasury. 


Columbus,  July  2-1,  1837. 
I  have  read  the  foregoing  letter,  and  have  seen  the  bond  to  which  it  re- 
fers, and  find  it  has  all  the  names  which  were  to  the  original  bond,  with 
the  exception  of  General  S.  Cocke ;  and  there  are  some  atlditional  names. 


W.M.  DOWSING,  Register. 


188  Rep.  No.  313. 

Treasury  Department, 

.ditg-ust  8,  1837. 
Silt :  I  am  happy  to  hear  of  the  frauk  and  honorable  course  proposed 
in  vour  letter  of  the  24th  uUimo.     It  would  be  convenient  to  have  the 
bond  and  resignation  arrive  here  by  the  early  part  of  September. 

I  am,  &.C. 

LEVI  WOODBURY, 

Secrelanj  of  Ike  Treasury. 

G,  D.  Boyd, 

Receiver  of  Public  Money,  Co/ujnbus,  Miss. 


Treasury  Department, 

October  1,  1837. 
Sir  :  I  have  to  acknowledge  the  receipt  of  your  letter  of  the  23d  ultimo, 
tendering  your  resignation  of  the  office  of  receiver  of  public  money  at 
Columbus,  Mississippi,  and  requesting  indulgence  on  the  debts  due  the 
United  States;  and  I  have  to  inform  you,  in  reply,  that  your  resignation 
is  accepted,  to  take  effect  on  the  1st  day  of  the  present  month,  and  a  suc- 
cessor will  be  appointed. 

The  district  attorney  will  be  instructed  to  exercise  as  much  indulgence 
as  the  public  interest  will  permit,  in  relation  to  the  adjustment  of  your 
concerns. 

I  am,  &c. 

LEVI  WOODBURY, 

Secretary  of  the  Treasury, 
Gordon  D.  Boyd,  Esq. 

Receiver  of  Public  Money,  Cohcmbus,  Miss. 


Extract  from  the  report  of  J'.  M.  Garesche,  appointed  to  exaynine  land 

offices. 

LAND  OFFICE  AT  COLUMBUS. 

Columbus,  (Miss.,)  June  14,  1837 
Sib  :  My  labors  are  at  last  closed  ;   my  examination  terminated  on 

^j^g instant.     I  might  have,  probably,  procured  the  assistance  of  a 

clerk  but  I  do  not  know  that  the  service  would  have  been  benefited, 
either  as  to  economy  or  despatch.  In  the  first  instance,  nothing  less  than 
five  dollars  per  day  would  have  been  accepted,  and  the  assistant  would 
have  been,  in  all  probability,  deficient  in  the  knowledge  recpiircd.  In  that 
case  my  teaching,  and  the  immerous  interruptions  occasioned  by  his  in- 
experience, would  have  made  me  lose  a  time  which  his  co-operation  on 
tlio  other  time  would  not  have  made  up.  My  anxiety,  too,  as  to  his  cor- 
rectness, would  have  obliged  me  to  examine  his  work  before  assuming 
the  responsibility.  I  therefore  declined  ;  and,  to  make  up  for  the  services 
of  this  neglected  aid,  I  was  assiduous  at  the  office  from  half-past  seven  in 


Rep.  No.  313.  189 

the  morning  till  seven  in  tiic  evening,  not  even  excepting  Sundays;  al- 
lowing myself  less  than  one  honr  for  my  dinner.  I  enter  into  all  these 
details,  that,  should  the  result  not  meet  your  anticipation,  the  fault  should 
not  be  attributed  to  any  negligence  on  my  part ;  but  I  trust  my  labors 
will  be  found  satisfactory. 

The  account  of  the  receiver,  which  I  have  made  out,  and  transmit 
herewith,  presents  against  him  a  balance  of  $55,965  54,  His  own  ac- 
count makes  it  $53,212  73;  it  is  also  annexed.  His  assets,  of  which  I 
also  send  you  the  list,  amount  to  ^61,549  98,  rating  the  land  at  $1  25 
only,  but  might  probably  realize  double  the  amount.  The  man  seems 
really  penitent;  and  I  am  inclined  to  think,  in  common  with  his  friends, 
that  he  is  honest,  and  has  been  led  away  from  his  duty,  by  the  example 
of  his  predecessor,  and  a  certain  looseness  in  the  code  of  morality,  which 
here  does  not  move  in  so  limited  a  circle  as  it  does  with  us  at  home. 
Another  receiver  would  probably  follow  in  the  footsteps  of  the  two. 
You  will  not,  therefore,  be  surprised  if  I  recommend  his  being  retained, 
in  preference  to  another  appointment ;  for  he  has  his  hands  full  now,  and 
will  not  be  disposed  to  speculate  any  more.  He  will  have  his  bond 
signed  by  the  same  sureties,  and  forwarded  in  a  few  days  to  Washington: 
this  speaks  favorably.  He  has,  moreover,  pledged  his  word  that,  if  re- 
tained, he  will  strictly  obey  the  law,  and  receive  nothing  but  specie  in 
payment  for  lands.  He  tells  me  that  he  is  about  selling  a  great  portion 
of  his  lands ;  that  and  some  other  negotiation  will  enable  him  to  dis- 
charge a  large  portion  of  his  debt  to  the  United  States  before  the  expira- 
tion of  the  present  quarter.  Lenity  towards  him,  therefore,  might  stimu- 
late him  to  exertions,  which  severity  might,  perhaps,  paralyze.  I  have, 
in  the  mean  time,  enjoined  the  closing  of  the  land  office  until  the  bond  is 
completed  and  returned.     No  land  has  been  sold  since  tlie  29th  ultimo. 

Various  are  the  reports  of  the  late  receiver's  solvability;  some  say 
that  he  will  pay  the  whole,  whilst  others,  and  the  greater  number,  do  not 
believe  that  he  will  pay  75  per  cent.;  hut  they  all  concede  that  his  intem- 
perance has  been  his  greatest  crime,  and  that  the  loss  of  his  money  has 
been  caused  by  that  of  his  reason ;  and  that,  as  in  algebra,  the  mhius  on 
one  side  has  been  made  p/us  on  the  other.  It  is  my  belief  that  hi«i  forced 
confidence  has  been  sadly  ;i bused.  He,  too,  passes  for  an  honest  man. 
I  am,  verv  respectfully,  sir,  your  obedience  servant, 

V.  M.  GARESCHE. 

Hon.  Levi  Wooddury, 

Secretary  of  the  Treasury. 


[G.  D.  Boyd  is  indebted  fifty  thousand  nine  hundred  and  thirty-seven 
dollars  and  twenty-nine  cents,  (^50,937  29,)  as  per  last  settlement  at  the 
Treasury.] 


List  of  notes  belonging  lo  G.  D.  Boyd. 

James  FuUerton,  due  January  1,  1837         -             -  -  iSSlOO  00 

Do.                         do.            1S3S        -             -  -  200  00 

Do.           '              do.            1839         -             -  -  200  00 

Joseph  Barron,  due  Marcli  1,  1837               -             -  -  200  00 

Do.          due  January  1,  1838           -             -  -  200  00 


Si  50 

00 

150 

00 

500 

00 

500 

00 

500 

00 

500 

00 

sOO 

00 

500 

00 

250 

00 

250 

00 

300 

00 

.'300 

00 

250 

00 

250 

00 

190  Rep.  No.  313. 

Hoiry  Brown,  due  February  8,  1S3S 
Do.  do.  1S39 

Nathan  Tims,  due  February  .9,  1838 
Do.  do.  1839 

Do.  do.  1810 

A.  W.  Harris,  duo   January   1,  1S38 
Do.  do.    '          IS  10 

Do.  pa^•able  G.  I).  B.  &:  J.  Henderson,  due 

1839.  .Sl.OOO— onc-bairis  -  .  .  . 

James  While,  due  January,  1838    -  -  -  - 

Do.  do.       1839    -  -  -  - 

H.  Ford.soii,  payable  G.  D.  B.  &  J.  Henderson,  due  No- 
vember, 1837,  iSsOO— one-half  is  -  -  - 
Do.                  do.           1S38,  i$G00— one-half  is 

AVm. ,due  January  1, 1838    -  -  -  - 

Do.  do.          1839    -  -  -  - 

A.  P.  Boyd  &  B.  Evans,  G.  D.  Boyd  &  J.  Henderson,  due 

February,  1838,  i?  1,200— one-half  is       -  -  -  (iOO  00 

Do.  do.     due  February,  1839,  Sl,200 — one- 

half  is      ------- 

Do.  do.          1840,  g  1,200— one-half  is 

H.  B.  Scarborojiah,  due  February,  1837      - 

Do.  ^    '  do.  -  -  - 

Do.  do.  -  .  - 

H.  B.  Scarborough,  due  July,  1837 
Do.  do.     '     1838 

W.  B.  Youna,  four  notes,  §1,000  each,  due  July.  1837, 1838, 
1S39,  1S40  -  -  -  -        '       - 

Wm.  Logan,  two  notes,  $125  each,  due  July,  1837,  1838   - 

\V.  B.  Williams,  two  notes,  S200  each,  due  January,  1837, 

1838  -  -  -  -  -  -  - 

G.  R.  Fitter  &  Richard  H.  Walker,  four  notes.  Si, 125  each, 

due  October,  1837,  1838.  1839,  and  1840 
Thos.  H.  Rogers,  two  notes, G.  J).  ]i.  &  J.  Henderson,  S500 

each,  due  March,  1838  and  1839 
Joseph  Ivey,  two  notes,  $250  each,  G.  D.  B.  &  J.  Hender- 
son, due  March,  1838,  1839 — one-half  is 
M.  M.  Robertson,  two  notes,  $250  each,  due  April,  1838,  - 
A.  Nash,  two  notes,  §250  each,  6500,  each  due  April,  1838, 
and  18.;;  9  ------ 

James  Vose,  endorsed  by  Clias.  S})encc  and  others,  due  in 

Connnercial  Bank,  Manchester,  April,  1838 
Wm.  Dodd  &  Allen  Dodd,  two  notes,  S200  each,  due  1838, 
and  1839  ---... 

Andrew  Adkinson,  three  notes,  w^800  each,  due  1838,  1839, 
1810  ---..._ 
W.  B.  ii:  If.  J.  Williams,  three  notes, one  J^2,000,  due  Janu- 
ary, 1839  :  one  S2,500,duc  January,  1840;  one  ig3,000,due 
January,  1840  - 
Evans,  Boyd,  &  Co.,  three  notes,  Sl66  GG  each,  due  yXpril, 
1838,  1839,  1810  -  .  -  .  . 


GOO 

00 

600 

00 

1,G66 

66 

1J666 

66 

1,666 

66 

250 

00 

250 

00 

1,000 

00 

250 

00 

400 

00 

4,500 

00 

500 

00 

500 

00 

500 

00 

1,000 

00 

1,000 

00 

400 

00 

2,400 

00 

7,500 

00 

500 

00 

Hep.  No.  313.  191 

J.  M.  Lilly,  three  notes,  ^166  66  each,  due  April,  1S3S, 

1S39.  1840  -  -  -  -  -  -        40  500  00 


i^-) 3  7, 150  00 
About  i^l, 000,  other  good  notes,  not  secured  by  laud  -  1,000  00 


^3 8,1 50  00 


I  liave,  also,  say  20,000  acres  of  land  unsold.  I  owe  out  of  this  one 
debt  of  J§1,300,  which  is  all  I  do  owe,  except  some  snriall  debts.  I  have- 
also  an  interest  of  half  of  the  profits  which  may  be  made  out  of  about 
1 5,000  acres  more. 

G.  D.  BOYD- 

JuTfE  5,  1837. 


7. — Correspondence  ivith  Lilllcbitri/  Hawkins,  receiver  at  Helena. 

Treasury  Department, 

Jamiary  30,  1835. 
Sir  :  The  Department  having  received  no  duplicate  of  the  monthly  re- 
turns, required  by  its  regulations,  showing  the  transactions  of  your  office 
since  your  appointment,  it  becomes  proper  to  call  your  immediate  atten- 
tion to  this  duty,  and  to  inform  you  that  promptitude  and  punctuality  in 
this  respect,  and  in  the  deposite  of  tlie  public  money,  are  to  be  regarded 
as  paramount  duties,  and  will  be  insisted  on  accord iu<j:ly. 

I  am,  &c.  LEVI  WOODBURY, 

Secretary  of  the  Treasury. 
LiTTLEBURV  Hawkins,  Esq., 

Receiver  of  Public  Money,  Helena,  %flrk. 


Helena,  March  13,  1835. 
Dear  Sir:  Yours  of  the  30lh  Januiiry  is  before  me  ;  in  reply  to  which 
I  have  to  say,  that,  notwithstanding  ;)  want  of  prom])tuess  is  somewhat 
manifest  on  my  part,  yet  permit  me  to  assure  you  that  all  diligence  on  my 
part  was,  and  shall  on  all  similar  occasions  be  used,  in  order  to  discharge 
promptly  the  functions  of  my  office.  But  my  apology  is,  that,  owing  to 
the  river  being  closed,  and  no  steamboats  running,  it  was  rendered  entirely 
impracticable  at  an  earlier  day  than  I  attended  to  it.  Since  my  first  de- 
posite, 1  flatter  myself  that  all  promptness  has  been  made  use  of. 
I  have  the  honor  to  be  your  obedient  servant, 

L.  I{A^^  KL\S,  Receiver. 
Hon.  Levi  Woodbury, 

Secretary  of  the  Treasui'y,  i^-c. 


192  Rep.  No.  313. 

Helena,  (A.  T.,)  Juli/  5,  1835. 
Sir  :  I  have  tho  honor  to  enclose  the  transcript  of  the  sales  of  land  at 
this  office  for  the  months  of  April,  May,  and  June. 

I  am,  respectfully,  your  obedient  servant, 

L.  HAWKINS. 
Hon.  Levi  Woodburv. 

Secretary  of  the  Treasury,  ^'c. 

N.  B. — They  were  retained  to  the  end  of  the  quarter,  with  an  inten- 
tion of  sending  on  an  agent  with  them.  Indisposition  of  the  agent  pre- 
vented. L.  H. 


Treasury  Department,  July  30,  1835. 

Sir  :  I  have  received  your  letter  of  the  5th  instant,  enclosing  register 
of  sales  and  receipts  for  the  months  of  April,  May,  and  Juno  last.  The 
transmission  of  these  papers  to  this  office  is  irregular,  as  will  be  seen  on 
reference  to  your  instructions.  That  there  may  be  no  further  misappre- 
hension in  regard  to  the  returns  required,  I  have  to  state,  for  your  inform- 
ation, that  your  quarterly  accounts  and  vouchers,  accompanied  by  the 
yegisler  of  sales  and  other  necessary  statements,  are  to  be  rendered  to  the 
General  liand  Office  for  settlement,  immediately  after  the  expiration  of 
eaclj  quarter.  Duplicate  monthly  returns,  showing  the  balance  on  hand 
in  the  previous  months,  the  aggregate  receipts,  and  the  several  heads  of 
disbiusement  in  the  current  month,  and  the  balance  due,  are  to  be  ren- 
dered at  the  close  of  each  month — one  of  which  is  to  be  sent  to  the  Secre- 
tary of  the  Treasury,  and  the  other  to  the  Commissioner  of  the  General 
Land  Office  :  and  as  no  return  of  the  latter  description  has  been  received 
from  you  since  that  for  the  month  of  January  last,  I  must  require  your 
immediate  attention  to  the  omission. 

The  regular  deposite  of  the  whole  of  the  public  moneys,  as  prescribed 
by  the  regulations  of  the  Treasury,  and  the  punctual  transmission  of  your 
accounts  and  monthly  returns,  are  paramount  official  duties.  I  trust  you 
will  so  regard  them,  and,  by  their  strict  observance,  thus  .save  the  Depart- 
ment the  painful  necessity  of  calling  the  attention  of  the  J]xecutive  to  any 
future  neglect  in  these  respects. 

I  am,  &c.  LEVI  WOODBURY, 

Secretary  of  the  Treasuty. 

L.  Hawkins,  Esq., 

Receiver  of  Public  Money,  Helena,  Jl.  T. 


Helena,  (A.  T.,)  .Jugust  2,  1835. 
Dear  Sir  :  Your  favor  of  the  30th  ultimo  came  safe  to  hand.  I  regret 
th;n  I  was  conq)elled  to  leave  to  make  my  de])osites  at  Natchez.  The 
monthly  and  quarterly  accounts,  both,  shall  be  furnished  from  the  com- 
mencement of  the  operations  of  this  office  to  the  end  of  the  last  quarter, 
and  shall  be  strictly  attended  to  hereafter. 

I  am,  respectfully,  your  obedient  servant, 

L.  HAWKINS,  Receiver. 
Hon.  Levi  Woodbury,  Secretary  of  the  yVcasury. 

[Balance    due    from    Mr.    Hawkins,   one    hundred   thousand    dollars, 
(?100,000,)  per  last  settlement  at  Treasury.] 


Uq>.  No.  313.  193 

S. — Correspondence  with  U.  G.  Mitchell,  receiver  at  Cahaba. 

CIRCULAR. 

TuEAsuRV  Department,  Februart/  28,  1835. 

Sir  :  It  has  been  intimated  to  the  Department  tliat  a  })ractice  prevails 
at  some  of  the  land  ofKces  of  permitting  entries  and  issuing  certificates 
of  purchase,  without  tlie  payment  of  the  purcliase-money  at  the  time  of 
the  entry.  Sucii  a  practice  being  unauthorized  and  highly  reprehensi- 
ble, I  have  deemed  it  proper  to  make  known  to  you,  that  if  it  has  been 
tolerated  by  you,  it  must  immediately  cease  ;  and  any  repetition  of  it  here- 
after, coming  to  the  knowledge  of  the  Department,  will  receive  prompt 
and  exemplary  notice. 

I  cannot  omit  the  occasion  to  impress  upon  you  the  necessity  of  a  strict 
attention  to,  and  punctual  compliance  with,  the  duties  required  of  you  in 
regard  to  the  prompt  deposite  of  the  public  moneys,  and  tranmission  of 
your  accoimts  and  returns ;  and  to  say  to  you  that  tlie  performance  of 
those  duties  must  be  regarded  as  paramount  to  all  other  in  your  otficial 
station.  I  am,  &c. 

LEVI  WOODBURY, 

Secretary  of  the  IVeasury. 

To  Receivers  of  Pitblic  Money  at  Cahaba,  Hunisville,  Montgomery , 
St.  Stephen',^,  .dui^nsta,  Chocchiana,  Neiv  Orleans,  Ouachita,  Demopo- 
lis,  Mardisville,  Sparta,  Tuscaloosa,  Coliunbus,  Washington,  Opelou- 
sas,  ajid  St.  Helena. 


Treasury  Department,  February  4,  1836. 
Sir:  Your  returns  for  the  months  of  October,  November,  and  Decem- 
ber, liave  not  been  received.  I  regret  that  there  should  be  any  occa- 
sion to  notice  the  neglect  or  accident,  (as  the  case  may  be,)  in  this  impor- 
tant duty  ;  and  avail  myself  of  this  occasion  to  inform  you  that,  unless 
your  future  returns  are  received  at  this  Department  within  the  month 
next  succeeding  that  for  which  the  return  is  rendered,  it  will  place  me 
under  the  dissagreeable  necessity  of  reporting  the  fact  to  the  Executive, 
in  order  to  comply  with  the  general  rule  in  this  class  of  cases. 
I  am,  &c. 

LEVI  WOODBURY, 

Secretary  of  the  Treasury. 

To  Receivers  at  Palmyra,  Missouri,  October,  November,  and  Decem- 
ber; Edivardsville,  Illinois,  November  and  December:  Qvincy,  Illinois, 
November  and  December;  Shaxc  nee  town,  Illinois,  October,  Novrynber, 
and  December ;  Cahaba,  i^  lab  a  m-a,  November  and  December  ;  St.  Stc- 
phen^f,  Mabaina,  November  and  December ;  Columbus,  Mississippi, 
November  and  December ;  Mount  Salus,  Mississippi,  November  and 
December;  Helena,  ,(Irkansas,  December;  Washington,  *Irkans(is,  De- 
cember; Zariesville,  Ohio,  December;  Vincenyies,  Indiana,  December ; 
Chicago,  Illinois,  December ;  Galena,  Illinois,  December ;  Vandalia, 
Illinois,  Dfcember ;  Tuscaloosa,  %/Ilabama,  December;  Jiugusta,  Mis- 
sissippi, December;  Chocchuma,  Mississippi,  December;  New  Orleans, 
Ouachita,  and  St.  Helena,  Louisiana,  December:  Green  Bay,  Michi- 
gan, December;  Batesville,  ^drkansas,  December. 


194  liep.  No.  .313. 

Rkceiver's  Oftice, 

Cuhaba,  February  ly,  1S36. 
Sir:  I  received  yours  ul'  the    lih  instant.     The  press  of  business  in 
this  oflice  has  prevented  tlie  returns  to  be  Ibrwarded  as  soon  as  they  are 
required. 

I  wish  to  know  if  it  would  be  advisable  to  suspend  the  entry  of  land  a 
few  days  at  a  time,  in  order  to  forward  the  returns  sooner,  'i'he  returns 
you  mention  have  been  forAvarded.  I  shall  spare  no  pains  to  comply  with 
the  instructions  from  your  Department. 

RespectfuUv,  vour  obedient  servant, 

U.  G.  MITCHELL,  /.'.  P.  M. 
Hon.  Levi  Woodjsurv, 

Secretary  of  the  Treasury. 


Treasury  Department, 

March  3,  1836. 

Sir  :  The  suspension  of  the  business  of  the  land  oliice,  for  the  purpose 
of  enabUng  you  to  make  out  your  monthly  returns,  cannot  be  permitted. 
As  those  retin-ns  are  intended  to  be  mere  exhibits  of  your  cash  transactions 
for  each  month,  and  are  not  necessarily  subject  to  the  delay  of  detailed 
book-entries,  1  can  perceive  no  sulllcient  reason  for  their  being  withheld 
longer  than  the  first  week  in  each  succeeding  month. 

I  am,  &:c., 

LEVI  WOODBURY, 

Secretary  of  the  Treasury. 
U.  G.  Mitchell,  Esq., 

Receiver  of  Public  Money,  Cahnba. 


Treasurv  Department,  November  24,  1836, 
Sir  :  Besides  the  neglect  complained  of  in  my  letter  of  the  18th  instant, 
I  regret  to  be  obliged  to  take  notice  of  another,  ecjually  culpable:  it  is  the 
omission  to  deposite  the  pubHc  money  at  the  intervals  prescribed  in  the 
instructions  of  the  Department.  It  appears  that  no  deposite  has  been 
made  by  you  since  2Sth  July  last,  although  the  balance  on  hand  on  the 
31st  August  amounted  to  ^02,910^,  as  shown  by  your  returns  of  that 
date.     I  nuist  therefore  claim  your  immediate  attention  to  the  subject. 

I  am,  &c. 

LEVI  WOODBURY, 

Secretary  of  the  Treasury. 
Receiver  ok   Pcrlic  Money, 

Cahaba,  Alabavia. 


Receiver's  Office, 

Caliaba,  December  S,  1836. 

Sik:   I  received  yours  of  the  24th  November.    I  am  truly  sorry  you 
think  I  have  neglected  my  duty  about  depositing  the  public  moneys;  that 


Hcj).  No.  313.  195 

is  a  thing  I  never  have  neglected,  .sick  or  well.  On  the  14th  Novemher, 
1836,  I  enclosed  you  the  cashier's  receipt,  dated  31st  October,  1S3(),  for 
^136,091   3-i, 

As  I  wrote  you  before,  the  delay  of  my  returns  was  owing  to   iny  in- 
disposition :  I  have  just  got  so  I  can  attend  to  my  office. 
Respectfully,  your  obedient  servant, 

U.  G.  MITCHELL,  Ji.  P.M. 
Hon.  Levi  Woodbukv, 

Secretary  of  the  Treasury,  Waahinglou,  I).  C. 


Treasuky   Department,  cAanjmry  17,  1837. 

Sill :  I  enclose  a  copy  of  a  note  submitted  to  the  Department  in  refer- 
ence to  the  conduct  of  your  ftssistant,  in  charging  a  discount  on  moneys 
received  in  ])aynieiU  for  public  lands;  and  have  to  request  that  you  will 
furnish  the  Department  with  full  explanations. 
I  am,  &.C. 

LEVI  WOODBURY, 

Secretary  of  the  Treasury. 
Receiveu  ok  PvBi.rc  Money,  Cahaba. 


Receiver's  Office, 

Cahaba,  February  3,  1837. 
Siu  :  I  received  yours  of  the  17th  ultimo.  I  am  truly  sorry  that  any 
gentleman  should  find  fault  with  the  gentleman  that  I  intrusted  my  office 
to  in  my  illness.  I  can  say  to  your  Department  that  Mr.  Joseph  Bab- 
cock  is  a  gentleman  of  high  standing  and  respectability  ;  a  man  that  is  hon- 
est, and  correct  ni  all  his  dealings  ;  lie  stands  as  high  as  any  gentleman  in 
this  section  of  country ;  and  he  would  scorn  to  do  any  act  derogatory  to 
a  gentleman.  I  now  enclose  you  Mr.  Babcock's  sUitement,  which  1  hope 
will  be  satisfactory  to  your  Department. 

ResjiectfuUv,  your  obedient  servant. 

U.  G.  MITCHELL, 

/Receiver  of  Public  Moneys. 
Hon.  Levi  Woodbury, 

Secretary  of  the  Treasury,  IVashingtoH  City. 


Cahaba,  Fetyruary  3,  1837. 
Dear  Sir  :  At  your  request,  I  have  to  slate,  in  answer  to  Mr.  Boykin, 
charged  with  having  received  of  him  paper  money  in  payment  for  land,, 
that  such  was  not  the  fact.  Mr.  Boykin  requested  me  to  take  paper  ;  I 
told  him  I  could  not,  btU  that  he  could  probably  get  his  money  changed 
in  town.  He  replied  that  it  was  a  hard  case  if  he  had  to  pay  a  per  cent., 
and  then  asked  me  if  I  would  exchange  with  him ;  I  answered  that  I 
had  specie  of  my  own,  unconnected  with  the  public  rnoni^y,  he  could 
have  at  the  current  rates  specie  was  at  that  lime  selling  at  in  town, 
which  was  five  per  cent.     He  agreed  to  this  arrangement,  paid  me  for 


196  Kep.  No.   313. 

the  exchange,  and  the  specie  was  deposited  by  me  for  his  land.'  Now, 
this  is  a  true  history  of  the  transaction  witii  Mr.  Boykin.  I  used  no  funds 
but  my  own,  which,  as  a  free  citizen,  I  contend  I  have  an  undoubted 
right  to  do. 

Very  respectfully,  your  obedient  servant, 

JOSEPH  BABCOCK. 
Uriah  G.  Mitchkli.,  Esq., 

Receiver. 


Treasury  Department,  Fehrua^^y  18,  1837. 
Sir:  Your  letter  of  the  3d  instant  is  received;  in  reply  to  which,  I 
have  to  observe,  that  neither  you  nor  any  other  person  in  your  employ- 
ment should  deal  in  exchanges,  inasmuch  as  it  tends  to  produce  com- 
plaints, and  subjects  you  to  suspicion,  however  upright  your  vjews  may 
be.     I  hope  it  will  not  be  allowed  hereafter. 

I  am,  &c. 

LEVI  WOODBURY, 
Receiver  ok  Public  Money,  Secretary  of  the  Treasury. 

Cahaba,  Alabama. 


Treasury  Department,  May  25,  1837. 
Sir  :  I  have  to  ask  your  attention  to  that  part  of  the  enclosed  circular 
which  relates  to  the  transmission  of  your  monthly  returns  to  this  office. 

I  am,  &c. 

LEVI  WOODBURY, 
Secretary  of  the  Treasury. 
To  Receivers  of  Public  Money, 

.SV.  Louis,  Palmi/ray   Cahaba.  New   Orteans,   Chocchuma.  and 
St.  Auiirustine. 


[Mr.  Mitchell,  as  late  receiver  at  Cahaba,  is  indebted  fifty-four  thousand 
six  hundred  and  twenty-six  dollars  and  fifty-five  cents,  (J'!5i,626  55.)] 


9. — Correspondence  ivith  Paris  Childress^  receiver  at  St.  Helena. 

Treasury  Department,  July  18,  1834. 
Sir  :  1  regret  to  be  under  the  necessity  of  noticing  your  omission  to 
make  returns  for  the  months  of  April,  May,  and  June  last.  By  a  circular 
dated  the  15t[i  of  January  last,  you  were  advised  of  the  necessity  of 
promptitude  in  this  respect ;  it  remains  that  I  should  again  remind  you, 
once  for  all,  that  tliis  is  a  duty  which  must  be  punctually  observed. 

I  am,  &c,, 

LEVI  WOODBURY, 

Secret (/ry  of  the  Treasury. 
To  Receivers  at  Marietta,  Ohio ;  f^lticennes,  Indiana  ;  Fort  IVayncy 
Indiana  ;  Sprinu; field,   Illinois ;  Fayette,  Missotiri ;    St.   Helena^ 
Louisiana ;  and-  St.  Stephen^s,  Alabama. 


Rep.  No.  313.  197 

Receiver's  Office, 
St.  Helena,  (La.,)  ,/2ugxist  15,  1834. 
Sir:  In  answer  to  yours  of  the  18th  ultimo,  I  furnish  yon,  herewith, 
my  accounts  tor  the  months  of  April,  May,  and  June  last,  showing  the 
transactions  in  my  oliicc.  Tlie  otiice  of  register  being  vacant,  no  busi- 
ness was  transacted;  and  I  was  of  opinion  that  it  would  not  be  thought 
necessary  by  the  Department  that  I  sliould  reiterate  from  month  to  month 
the  same  statement,  believing  that  my  quarterly  returns  would  answer 
every  thing  fully  and  satistactorily. 

I  am,  sir,  very  reepectfully,  your  obedient  and  humble  servant, 

PARIS  CHILDRESS,  Receiver, 
Hon.  Lkvi  Woodrukv, 

Seci'etary  of  the  Treasury. 


CIRCULAR. 

Treasuky  Department, 

February  28,  1835. 
Sir  :  It  has  been  intimated  to  the  Department  that  a  practice  prevails 
at  some  of  the  land  otlices  of  permitting  entries  and  issuing  certificates  of 
purchase,  without  the  payment  of  the  purchase-money  at  the  time  of  the 
entry.  Such  a  practice  being  unauthorized  and  highly  reprehensible,  I 
have  deemed  it  proper  to  make  known  to  you  that,  if  it  has  been  tolerated 
by  you,  it  must  immediately  cease;  and  any  repetition  of  it  hereafter, 
coming  to  the  knowledge  of  the  Department,  will  receive  prompt  and  ex- 
emplary notice. 

I  cannot  omit  the  occasion  to  impress  upon  you  the  necessity  of  a  strict 
attention  to,  and  punctual  compliance  with,  the  duties  required  of  you  in 
regard  to  the  prompt  depositc  of  the  public  moneys,  and  transmission  of 
your  accounts  and  returns;  and  to  say  to  you  that  the  performance  of 
those  duties  must  be  regarded  as  paramount  to  all  other  in  your  official 
station. 

I  am,  &c. 

LEVI  WOODBURY, 

Secretary  of  the  Treasury. 

I'o  Receivers  of  Public  Monev  at  Cahaha,  Iluntsville,  Monli^orneryj 
St.  Stephen^ s,  Auf^usta,  Chocckuma,  Neio  Orleans,  Onuchita,  De- 
mopolis,  Alardisville,  Sparta,  Tuscaloosa,  Columbus,  fVashington^ 
Opelousas,  and  St.  Helena. 


Treasury  Department, 

February  4,  1836. 
Sir  :    Your  returns  for  the  month  of  December,  have  not  been  re- 
ceived.    1  regret  that  there  should  be  any  occasion  to  notice  the  ne- 
glect or  accident,  (as  the  case  may  be,)  in  this  important  duty ;  and 
avail  myself  of  the  occasion  to  inform  you  that,  unless  your  future  re- 


198  Rep.  No.  313. 

turns  are  received  at  the  Department  within  the  month  next  succeed- 
ing that  fur  which  the  return  is  rendered,  it  will  place  me  under  the 
disagrceahle  necessitf*ol' reporting  the  fact  to  the  Executive,  in  order  to 
comply  with  the  general  rule  in  this  class  of  cases. 
I  am,  &c. 

LEVI  WOODBURY, 

Sccrelin^y  t>f  Ike  Treasury. 
Paris  Childkess,  Esq.,  Receiver  at  St.  flelenu,  La. 


Receiviok's  Office, 
St.  Helena,  (La.,)  March  I,  1836. 

Sir:  With  this  you  will  receive  my  account  current,  aggregate  of  moneys 
received,  and  certificate  of  deposite  for  ten  thousand  dollars ;  f>om  which 
it  is  to  be  seen  there  is  a  balance  of  two  thousand  I  wo  hundred  and  eighty- 
two  dollars  and  five  ond  a  hah'  cents  in  hand. 

Your  letter  of  tlie  4th  of  February  has  been  received  ;  and  I  should 
regret  that  any  of  my  acts,  for  tlie  future,  should  place  you  under  ihe  dis- 
agreeable necessity  of  informing  the  Executive  of  my  neglect  of  duty. 
1,  like  others,  am  liable  to  make  luistakcs  and  neglect  my  duty  ;  but  I  be- 
lieve seldom,  in  comparison  with  others.  But  I  shall  endeavor,  whilst  1 
remain  in  othce,  so  to  act  as  to  clear  me  from  any  suspicions  relative  to 
punctuality  in  returns. 

Yours,  respectfully, 

PARIS  CHILDRESS,  Receiver. 

Won.  Levi  Woodbury, 

Secretary  of  tlic  Treasury. 


Treasury  Departmeist,  Marcti  26,  1836. 
Sir  :  Complaints  are  made  to  the  Department  that  you  do  not  reside  at 
the  land  oHic^,  and  that,  in  consequencp,  it  frequently  occurs  that  persons 
having  business  at  the  office  are  disappointed  in  seeing  you,  and  obliged 
to  return  without  being  able  to  acconij)lish  their  business. 

You  are  aware  that,  by  the  regulations  of  the  Departmcnr,  you  are  re- 
quired to  reside  at  the  place  where  the  land  ofiice  is  located,  while  you 
fill  the  office  of  receiver.  I  must  therefore  claim  your  immediate  attention 
to  this  matter.  I  am,  &c. 

LEVI  WOODBURY, 
Secretary  of  the   Treasury. 
Receiver  ok  Public  .VIoney, 

St.  Helena,  I^jxtisiana. 


Receiver's  Office, 
St.  Helena,  (La.,)  ^/ni^ncst  12,  1836. 
Sir  :  I  have  the  honor  to  transmit  to  you,  herewith,  my  account  curren 
and  aggregate  statement  of  moneys,  ami  certificate  of  deposite  for  the 
month  of  July;  showing  a  balance  of  five  thousand  two  hundred  and 


Rep.  No.  .313.  199 

eleven  dollars  and  thirty-eight  and  a  liuli'  cents  in  favor  of  the  United 
States. 

I  also  will  advise  the  Dej^artnient  of  the  fact  that  I  have  removed  to 
the  office,  and  sliall  never  be  absent,  unless  to  deposite. 
Respectfully,  yonr  obedient  servant, 

PARIS  CHILDRESS,  Receiver. 
Hon.  Secretary  of  the  Treasury, 

IVashiiigton  city. 


New  Orleans,  February  25,  1838. 
Dear  Sir  :  With  this  you  will  receive  my  account  current,  aggregate 
of  moneys  received,  and  account  with  the  Treasurer  of  the  United  States, 
which  hove  been  delayed  in  their  transmission  by  my  leaving  the  office, 
and  there  being  no  mail  at  Greensburg  during  the  last  month. 

In  this  I  also  tender  you  my  resignation  as  receiver  of  public  moneys, 
being  no  longer  worthy  of  the  trust ;  and,  in  conclusion,  must  reconmiend 
Mr.  T.  N.  Baylies  as  a  gentleman  more  worthy  to  fill  the  vacancy  than 
any  one  of  the  present  applicants. 

Respectfully,  vour  obedient  servant, 

PARIS  CHILDRESS. 
Hon.  Levi  Woodbury, 

Secretary  of  the  T/easury,  I  Washington  city. 


Treasury  Department,  il^/rcA  19,1838. 
Sir  :  Your  resignation  of  the  office  of  receiver  of  public  money  at  St. 
Helena  has  been  received  and  accepted  ;  and  I  have  to  request  that  the 
balance  of  public  money  in  your  hands  may  be  placed  in  the  Union  Bank, 
at  New  Orleans,  to  the  special  credit  of  the  Treasurer. 

I  am,  sir,  very  respecttnlly,  your  obedient  servant, 

LEVI  WOODBURY, 
Secreta?'y  of  the   IVcamry. 
Paris  Childress,  Esq.,  .SV.  Helena.,  La. 

[Balance  due  from  Paris  Childress,  twelve  thousand  four  hundred  and 
forty-nine  dollars  and  seventy-six  cents,  (§12,149  76.)] 


10. — Correspondence  with  M.  J.  ,'ill.tn,  receiver  at  Tallahassee. 

Treasury  Department, 

November  15,  1836. 
Sir  :  The  punctual  deposite  of  the  public  moneys  at  slated  intervals 
being  enjoined  by  the  requisitions  of  the  Department,  it  becomes  proper 
to  invite  your  special  attention  to  this  dnty,  and  to  require  that  the 
amount  in  your  hands  be  placed  to  the  credit  of  the  Treasurer  in  one  of 
the  deposite  banks.  To  enable  you  to  do  so  with  more  convenience,  and 
to  save  th3  expense  of  travel,  you  are  authorized  to  procure  a  draft  on 


200  Rep.  No.  313. 

any  convenient  deposite  bank  for  the  funds  on  hand,  and  to  allow  a  rea- 
sonable premiiun  for  the  same.  Tiie  draft  so  procured  can  be  sent  to  the 
bank  on  whioh  it  is  drawn,  and  credited  to  the  Treasurer. 

I  am,  &c.  LEVI  WOODBURY, 

Secretary  of  the  Treasury. 
Math.  J.  Allen,  Esq., 

Receiver  of  Public  Moneys,  Tallahassee,  Fa. 


Treasurv  Department, 

February  21,  1837. 
Sir:  I  regret  to  be  under  the  necessity  of  complaining  of  your  neglect 
to  render  your  returns  for  November,  December,  and  January.     Your  im- 
mediate attention  is  requested  to  the  subject. 

I  am,  &c.  LEVI  WOODBURY, 

Secretary  of  the  Treasury. 
Receiver  of  Public  Money, 

Tallahassee,  Florida. 


Tallahassee,  March  31,  1837. 

Sir:  Herewith  are  transmitted  my  accounts  current  for  the  months  of 
January  and  February,  1S37.  I  some  time  since  received  a  communica- 
tion from  you,  drawing  my  attention  to  the  transmission  of  my  returns  for 
November  and  December  of  the  last  year;  but,  as  they  had  been  some 
time  forwarded,  I  did  not  think  it  necessary  to  answer  that  communica- 
tion;  but,  upon  reflection,  I  feel  uncertain  wliether  I  transmitted  io  you 
the  monthly  returns  due  your  office — indeed,  it  liad  escaped  my  recollec- 
tion that  they  were  due  you.  You  will  much  oblige  me  by  informing  me 
for  what  months  accounts  current  arc  due  you,  and  I  will  transmit  copies 
of  them  immediau^ly  after  its  receipt. 

Very  respcctfullv,  your  obedient  servant, 

MATTHEW  J.  ALLEN,  Receiver, 

Hon.  Levi  Woodisury, 

Secretary  of  the  Treasury. 


Treasury  Department, 

^pril  12,  1837. 

Sir  :  The  monthly  returns  in  arrear  from  your  office  are  those  for  Nc- 
vemVjer  and  December  last,  as  you  have  already  been  informed. 

I  am,  &c.  LEVI  WOODBURY, 

Secretary  of  the  Treasury. 
Receiver  or  Public  Money, 

Tallahassee. 


Rep.  No.  313.  201 

Treasury  Department, 

January  13,  1838. 
Sir  :  The  acting  Quartermaster  General  lias  thi.s  day  coninmnicatcd  to 
me  a  letter  ol"  Licutenftnt  J.  W.  McCrabb,  dated  the  2d  instant,  which 
states  that  you  have  refused  to  pay  five  drafts  of  §55,000  each,  drawn  by 
the  Treasurer  upon  you  in  favor  of  Major  J.  B.  IJrant,  United  States 
army.  If  a  satisfactory  explanation  of  this  refusal  shall  not  be  received 
by  return  of  mail,  it  will  be  my  imperative  duty  to  lay  the  case  before  the 
President,  for  his  final  action  upon  your  breach  of  official  trust,  to  the  great 
injury  of  the  pubhc  service. 

I  am,  &c.  J.EVI  WOODBURY, 

Secretary  of  the  Treasury. 
M.  J.  Allen,  Esq., 

Receiver  of  Public  Money,  Tallahassee. 


Tallahassee,  Jf/ni/z/ry  13,  1838. 

Sir  :  I  write  this  for  the  purpose  of  accounting  to  you  for  the  fact  of 
my  having  protested  drafts  on  this  office  when  there  were  funds  in  it  to 
the  credit  of  the  Treasury. 

Before  the  suspension  of  specie  payments,  I  received  the  notes  of  the 
two  banks  at  this  place,  with  an  express  understan'&ing  with  their  officers 
that  it  was  to  be  considered  as  a  special  specie  deposite.  At  the  period 
of  suspension  at  this  place,  the  directors  of  those  banks  refused  to  recog- 
nise any  difierence  between  myself  and  their  other  creditors,  on  the  ground 
that  the  officers  of  the  banks  were  not  authorized  to  make  the  contract 
which  they  did  witli  mc  as  receiver. 

There  remains,  therefore,  in  those  banks  funds  belonging  to  the  Treas- 
ury to  the  amount  of  about  ^30,000  (unavailable  at  this  time)  in  specie. 
This  sum  is  perfectly  secure,  and  will  be  immediately  paid  on  the  resump- 
tion of  specie  payments.  The  banks  offered  drafts  on  the  North  to  the 
holders  of  those  drafts  which  have  been  protested,  but  they  refused  to 
receive  any  thing  except  the  specie. 

Very  respectfully,  your  obedient  servant, 

MATTHEW  J.  ALLEN,  Receiver. 

P.  S.  January  19,  1S3S. — I  have  just  discovered  that  by  neglect  this 
letter  was  not  transmitted  when  written,  and  that  my  commimication  of 
yesterday,  in  which  I  refer  to  it,  has  preceded  it. 

M.    J.    ALLEN- 


TALLAHASSEE,  January  18,  1838, 
Sir:  Herewith  are  transmitted  my  weekly  returns  for  tjie  first  audi 
second  weeks  of  this  month.     You  will  perceive  that  though  (for  the  rea-- 
sons  assigned  in  my  last  communication  to  you)  I  had  been  compelled  tc 
protest  drafts  previously  presented  for  want  of  specie  funds,  yet  I  have 
paid  one,  viz :  No.  2915  on  W\T.r  warrant  No.  8211,  since,  for  SS,000,  on 
the  condition  that  the  deficiency  in  bank  (in  specie)  should  be  made  upr 
by  future  deposites.     Said  deficiency  is  ^5,040  12. 
14 


-202  Rep.  No.  313. 

The  balance  on  hand,  §26,895  37],  is  (as  stated  in  my  last)  at  present 
luiavailable  to  the  Treasury,  but  perfectly  safe ;  a  part  of  the  above 
balance  is  on  hand  in  cancelled  Treasury  notes,  which  will  be  trans- 
mitted as  directed. 

Very  respectfully,  your  obedient  servant, 

MATTHEW  J.  ALLEN,  Receiver. 
lion.  Levi  WooDHrnv, 

Secret (wy  of  the  Treasury. 


Treasury  Department, 

February  2,  1838. 
Sir:  Your  letters  of  the  13th  and  18th  instant  are  received.  The  Depart- 
ment cannot  recognise  any  such  excuse  as  that  assigned  in  your  letter  for 
the  failure  lo  meet  its  drafts  in  specie.  The  receipt  of  bank  notes  has 
been  expressly  prohibited.  It  is  required  that  you  will  put  yourself  in 'a 
situation  to  pay  all  the  money  on  hand  in  specie,  if  desired,  by  procuring 
it  from  the  bank  or  elsewhere,  and  paying  it  out  in  discharge  of  the  drafts 
drawn  on  you,  if  the  holders  demand  if.  I  shall  expect  a  full  and  satis- 
factory reply  to  this  letter,  by  return  of  mail,  in  order  that  the  whole  sub- 
ject may  be  submitted  to  the  President. 
^  I  am,  &c. 

LEVI  WOODBURY, 

Secretary  of  the  Trcafiin'y. 
M.  J.  Allen,  Esq., 

Receiver  of  Public  Money,  Tallahassee,  Florida. 


Tallahassee,  January  24,  1838. 

Sir:  I  this  day  received  your  connnunication  of  the  13th  instant,  re- 
quiring an  explanation  of  the  fact  of  my  having  refused  to  pay  four  drafts 
of  i?5,000  each,  drawn  on  me  in  favor  of  J.  B.  Brant,  United  States  army. 

I  bcsr  leave  to  refer  you  to  my  letter  of  the  13th  instant,  in  which  I 
have  fo:plained  tlie  reasons  of  my  having  been  compelled  to  protest  the 
drafts  abov^e  mentioned. 

You  will  please  inform  me  whether  my  explanation  is  satisfactory,  and 
what  course  shall  be  pursued  in  regard  to  the  public  moneys  on  deposite, 
in  the  banks  of  this  i)lace. 

I  am,  very  respectfully,  your  obcdioiu  servant, 

MATTHEW  .).  ALLEN,  Receiver. 

V.  S.  When  in  Washington  last  sinnmcr,  I  informed  you  personally  of 
the  situation  of  those  funds. 

M.  J.  A. 
Hon.  Levi  Woouburv, 

Secretary  of  the  Trcamry. 


Rep.  No.  313.  203 

Treasury  Department, 

February  5,  1838. 
Sir  :  Your  letter  of  the  24th  ultimo  is  received.  When  you  told  me 
last  summer  that  you  had  deposited  your  funds  in  one  of  the  banks  at 
Tallahassee,  I  stated  that  this  Department  had  given  no  instructions  to 
that  effect,  and  could  not  recognise  the  act.  I  further  stated  that  you 
must,  through  the  bank  or  otherwise,  meet  the  drafts  of  the  Department 
in  funds  satisfactory  to  the  holders  of  our  drafts.  I  can  see  no  other  al- 
ternative consistent  with  the  law. 

It  will  be  a  misfortune  if  the  bank  neglect  its  duty  to  you,  which  may 
justify  a  little  delay;  but  the  most  obvious  course  is,  at  once  to  take  steps 
to  enforce  that  duty,  or  to  procure  funds  elsewhere  to  discharge  your  obli- 
gation to  the  Government  as  speedily  as  possible. 

I  am,  &c. 

LEVI  WOODBURY, 
Secretary  of  the  Treasury. 
Matthew  J.  Allen,  Esq., 
Receiver  of  Public  Money,  Tallahassee,  Florida. 


Tallahassee,  February  21,  1838. 

Sir:  In  the  belief  that  you  will  apply  the  corrective,  I  feel  it  my  duty 
to  apprize  you  of  some  things  which  the  agents  of  the  Government  are 
-doing  in  this  quarter. 

Mr.  M.  J.  Allen,  receiver  of  public  moneys,  is  in  the  practice  of  exact- 
ing an  exorbitant  discount  upon  the  bank-note  currency  of  the  country, 
when  offered  in  payment  of  public  lands.  I  have  before  me  a  memoran- 
dum of  two  cases  which  occurred  on  the  16th  instant.  In  one  of  them 
the  discount  was  fourteen,  in  the  other  fifteen  per  cent.;  and  tlie  gentle- 
man who  gave  the  memorandum  stated  to  me  that  he  had  paid  the  re- 
ceiver as  much  as  twenty  per  cent.  You  will  perceive  that  the  effect  of 
the  specie  circular  is  to  enrich  your  office,  at  the  expense  of  the  people. 

On  the  bth  ultimo,  the  cashier  of  the  Union  I5ank  of  Florida  received 
from  Lieutenant  John  Williamson  a  draft  of  the  Treasury  of  the  United 
States,  on  the  receiver,  for  eight  thousand  dollars.  The  directions  of 
Williamson  were,  to  demand  specie,  with  which  to  pay  the  workmen  em- 
ployed in  the  construction  of  the  arsenal  at  Mount.  Vernon.  The  receiver 
had  not  the  specie,  and  the  draft  would  have  gone  back  protested,  but 
that,  on  a  promise  by  Allen  to  refund  the  specie,  the  draft  was  paid  by  the 
cashier  of  the  bank.  I  presimie  that  the  drafts  of  the  Treasurer  are  pre- 
dicated upon  funds  reported  to  be  in  the  hands  of  the  receiver.  It  is  mat- 
ter of  complaint,  that  citizens  have  applied  to  enter  lands,  their  money 
was  refused,  and,  after  having  converted  their  bank  notes  into  land-office 
money,  upon  another  application  for  their  land  they  have  found  it  entered 
by  the  receiver  or  by  his  clerk,  li.  R.  W.  Andrews.  It  is  less  than  two 
years  since  either  the  receiver  or  his  clerk  has  been  in  office.  Of  the  pre- 
vious pecuniary  resources  of  the  first,  I  have  no  information ;  but  I  have 
been  informed  that  the  clerk  Avas  not  worth  five  hundred  dollars.  On  the 
12th  instant,  M.  J.  Allen  subscribed  to  the  new  stock  of  the  Union  Bank 
of  Florida  forty  thousand  dollars ;  and  in  name  of  Allen  and  Andrews, 


204  Rep.  No.  313. 

twenty  thousand  dollars;  the  subscription  to  be  secured  by  mortgage  of 
land. 

Should  you  deem  this  couiniuuication  worthy  of  notice,  and  will  com- 
mission the  Surveyor  General,  or  Governor  Call,  or  any  person  possessing 
your  confidence,  to  investigate  the  matter,  I  will  adduce  the  testimony  in 
proof  of  what  I  have  written. 

Very  respectfully, 

JOHN  G.  GAMBLE. 
The  President  of  the  United  States. 


Tallahassee,  March  17,  1838. 

Sir:  Enclosed  are  answers  to  the  cliarg<3S  preferred  against  me  by  John 
G.  Gamble,  as  communicated  in  yours  of  the  8th  instant. 

I  expect  to  be  in  Washington  city  about  the  middle  of  next  month, 
when  I  will  call  upon  you  [and  explain]  some  of  the  circumstances  con- 
nected with  those  charges. 

The  cashier  of  the  Union  Bank  of  Florida  has  told  me  that  he  expected 
a  draft  in  their  favor,  on  me,  for  the  amount  of  pul)lic  funds  in  their 
hands.  You  will  please  inform  me  whether  this  arrangement  will  be 
made,  that,  if  other^ase,  I  may  take  steps  to  convert  those  funds  into  such 
as  wiU  suit  the  Govermnent,  as  I  wish  to  pay  the  whole  balance  on  hand 
as  early  as  possible. 

Very  respectfully,  your  obedient  servant. 


M.  J.  ALLEN. 


Hon.  Levi  Woodbury, 

Secretary  of  the  Treasury. 


Tallahassee,  March  17,  183y. 
I  divide  the  charges  made  by  Mr.  Gamble  against  .me,  as  receiver,  into 
three,  and  will  answer  theni  in  the  order  made. 

1.  As  regards  my  receiving  bank-notes  at  15  per  cent,  discount. — I 
have,  since  about  the  1st  of  January  last,  in  a  number  of  instances,  (at 
the  earnest  request  of  persons  wishing  to  secure  lauds  who  were  unable 
to  obtain  the  specie.)  received  the  notes  of  the  Union  and  Central  Banks 
of  Florida,  and  none  other,  at  a  discount  of  15  per  cent.,  and  at  no  other 
rate.  Before  I  agreed  to  do  this,  the  people  were  giving  20  per  cent,  for 
specie,  and  it  was  often  not  to  be  had  at  that.  I  have  received  nothing 
but  specie  or  Treasury  notes  lately;  nor  shall  I  again,  under  any  circum- 
stances. What  I  have  received  has  been  merely  for  the  accommodation 
of  persons  desirous  of  securing  land,  for  I  could  make  nothing  by  the 
operation,  as  it  would  cost  within  a  fraction  of  the  15  per  cent,  to  convert 
Union  Bank  funds  into  specie ;  and  1  knew  I  was  doing  it  at  my  own 
risk,  being  bound  to  the  Government  for  specie.  John  G.  Gamble  is  pres- 
ident of  tiie  Union  l>ank,  (as,  probably,  yon  know,)  and  is  now  charging  8 
per  cent,  for  exchange  on  the  North,  ai-id  the  same  for  Treasury  notes,  ir> 
iiis  owii  obligations. 

2.  As  regards  the  draft  for  ^8,000  in  favor  of  J.  Williamson. — The 
statement  of  Mr.  Gamble  is  substantially  correct,  and  I  have  refunded  the 


Eep.  No.  313.  205 

•specie,  as  promised;  but  Mr.  Gamble  fo)\qot  to  tell  you  lliat  the  Union 
Bank  had  more  than  that  amount  of  my  funds  in  its  hands,  at  that  time, 
which  he  chose  to  call  notes,  contrary  to  justice  and  honor. 

3.  The  charge  that  persons  have  applied  to  enter  lands,  their  money 
been  refused,  and  the  land  subsequently  entered  by  myself  or  Mr.  An- 
drews, is  wholly  false,  and  I  defy  the  evidence.  Mr.  Andrews  is  not  my 
clerk,  as  Mr.  Gamble  very  well  knov/s;  he  is  the  clerk  of  Mr.  Hackley, 
the  register.  I  am  attending  to  the  duties  of  my  own  office.  When  away 
last  sunnuer,  Mr.  Robert  15,  Copeland  was  my  agent. 

The  Union  Bank  has  lately  bought  out  the  Central  Bank  of  Florida;  so 
that  the  amount  in  that  bank,  to  my  credit  as  receiver,  is  now  due  from 
ihe  Union  Bank. 

M.  J.  ALLEN,  Receiver. 

Hon.  Levi  WoomuiRY, 

Secretary  of  Ihe  Treasury. 

P.  S.  I  invite  the  fullest  and  promptest  investigation  into  my  conduct  as 
receiver,  conscious  that  if  I  have  erred,  it  has  been  through  no  improper 
motive. 

M.  J.  ALLEN. 


Tallahassee,  ^^pi-il  13,  1838. 

Sir  :  I  have  just  received  yours  of  the  2d  current,  saying  it  ia  proper  I 
should  submit  such  proof  as  may  be  in  my  power  in  support  of  the  charges 
made  against  M.  J.  Allen,  in  my  letter  of  the  21st  of  February  last,  ad- 
dressed to  the  President  of  the  United  States. 

Believing  that  you  would  direct  an  inquiry  to  be  made  here  by  some 
gentleman  possessing  the  confidence  of  the  Department,  and  that  Mr.  Al- 
len and  the  witnesses  would  be  brought  face  to  face,  I  have  not  deemed 
it  necessary  to  obtain  certificates  to  prove  the  charges.  Indeed,  I  did  not 
suppose  they  would  be  desired.  Nor  does  your  letter  suggest  a  denial  of 
any  other  than  the  charge  in  relation  to  the  entry  of  lands  which  have 
been  applied  for  by  others. 

The  gentlemen  whose  names  are  associated  with  that  charge  reside 
more  than  sixty  miles  from  this  city.  I  v/ill  v/rite  to  them  this  day  to 
furnish  the  proof  you  ask ;  but  the  great  irregularity  of  the  mails  may 
prevent  a  receipt  of  their  answer  for  some  weeks. 

But,  although  you  memion  a  denial  of  one  charge  only,  your  letter  asks 
proof  of  "  that  and  the  other  charges."  I  have  accordingly  written  to  the 
parties,  (who  I  know  did  pay  the  discount  on  bank  paper  mentioned  in 
my  letter  to  the  President,)  for  their  written  statements.  They,  however, 
reside  some  seventy  miles  from  Tallahassee,  in  an  opposite  direction. 

I  presume,  however,  that  when  Mr,  Allen  reaches  Washington,  he  will 
not  deny  the  practice  of  which  he  is  charged,  and  that  the  dekiy  of  proof 
will  be  immaterial. 

In  support  of  the  other  two  facts  mentioned  in  my  letter  to  the  Presi- 
dent, I  have  a  certificate  of  the  cashier  of  the  Union  Bank  of  Florida. 

I  must  here  apprize  you  that,  in  practice,  the  two  offices  of  register  and 
receiver  are  virtually  blended  in  one.  The  register,  a  most  excellent  and 
■deserving  man',  had  employed,  as  his  clerk  in  the  office,  II,  R,  VV,  An- 
-drews,  to  attoid  to  the  duties  of  the  office.    The  receiver,  Mr.  Allen,  sub- 


206  Kep.  No.  313. 

sequently  employed  the  same  Andrews  as  his  clerk.  Almost  all  of  the 
business  of  both  offices  is  done  by  this  clerk.  Eoth  offices  arc  kept  in  the 
same  room ;  and,  in  practice,  the  check  intended  by  law  in  the  establish- 
ment of  the  two  offices  is  nseless.  I  am  sure  that  the  register  is  unaware 
of  the  impropriety  of  the  course,  and  that  he  will  a])[  ly  a  corrective  upon 
your  giving  him  a  hint  to  that  effect. 

In  conclusion,  I  will  say  that  my  action  in  this  matter  has  been  dictated 
by  a  sense  of  duty — a  duty  to  be  performed  by  some  one,  although  un- 
pleasant. With  IVIr.  Allen  I  have  never  had  an  unkind  word,  nor  have  I 
had  towards  him  an  unkind  feeling. 


Very  respectfully, 

Hon.  Levi  Woodbury, 

Secretary  of  the  Treasurr/. 


JOHN  G.  GAMBLE. 


Union  Bank  of  Florida, 

Tallahassee,  %fipril  14,  1838. 
I  hereby  certify  that  the  statement  made  by  John  G.  Gamble,  in  his  let- 
ter of  the  21st  of  February  last,  addressed  to  the  President  of  the  United 
States,  in  relation  to  the  draft  of  the  Treasury  Department  in  favor  of 
Lieutenant  John  Williamson  on  M.  J.  Allen,  receiver  of  public  moneys, 
for  eight  thousand  dollars,  is  a  true  statement. 

I  also  certify,  that,  as  stated  in  said  letter,  M.  J.  Allen  did,  on  the  12th 
of  February  last,  subscribe,  in  his  own  name,  for  four  hundred  shares  (or 
^40,000)  of  the  stock  of  this  bank,  and  in  the  name  of  Allen  &  Andrews 
two  hundred  shares  ;  making,  together,  a  subscription  of  S60,000. 

I  also  certify  that  since  that  time  H.  R.  W.  Andrews,  the  clerk  and- 
partner  of  said  Allen,  has  subscribed  for  ^3,000  more  of  said  stock. 

JOHN  PARKHH.L,  Cashier. 


Tallahassee,  *.^pril  IS,  1838. 
Sir:  Since  the  date  of  mine  of  13th  current,  I  have  seen  one  of  the 
gentlemen  to  whom  I  liad  been  referred  for  proof  "  that,  after  refusing  the 
money  of  applicants  for  land,  the  receiver  liad  entered  the  same  land 
himself;"  and  I  find  that  my  informant  liad  misapprehended  the  tacts  of 
tlie  case.  The  information  was  given  in  so  positive  a  manner  that  I  did 
not  doubt  its  truth.  But  as  there  has  certainly  been  mistake  in  one  case, 
there  may  be  mistake  in  the  others ;  and  I  feel  it  my  duty  at  once  to  ap- 
prize you  of  it,  that  Mr.  Allen  may  not  sufler  from  any  untrue  charge. 
The  other  charges,  I  understand,  are  not  denied  by  him. 

Very  respectfully, 

JOHN  G.  GAMBLE. 
Hon.  Levi  Woodhury, 

Secretary  of  the  Treasury. 


Eep.  No.  313.  20T 

Treasury  Department,  «/^/;n7  2,  1838. 
Sir:  Vour  letter  of  17th  ultimo  is  rcceivecl,  and  Mr.  Gamble  has  this 
day  been  written  to,  requesting  him  to  lor  ward  any  evidence  in  his  power 
in  support  of  his  charges,  and  especially  the  third,  which  you  deny,  and 
which  is  very  material.  When  the  evidence  is  received,  the  President 
will  decide  on  the  whole  subject. 

I  imderstand  that  the  bank  has  made  an  engagement  to  pay  here 
§10,000  on  your  account.  If  they  pay  more,  it  will  be  credited.  I  trust 
that  the  drafts  heretofore  drawn  on  you  will  be  promptly  paid.  In  the 
mean  time,  it  is  desirable  to  get  all  your  accounts  arranged,  as  the  De- 
partment cannot  consent  to  your  leaving  Tallahassee  till  the  subject  is 
adjusted. 

1  am,  respectfully,  your  obedient  servant, 

LEVI  WOODBURY, 
Receiver  of  Public  Money,  Secretary  of  the  Treasury, 

Tallahassee,  Florida. 


Washington,  April  19,  1838. 

Sir  :  Enclosed  are  two  statements :  one  made  by  H.  R.  W.  Andrews^- 
and  attested  by  R.  J.  Hackley,  (the  register  at  Tallahassee,)  going  to  dis- 
prove the  third  charge  of  Mr.  Gamble  ;  and  one  from  H.  R.  W.  Andrews, 
showing  that  my  receiving  bank  notes  at  15  per  cent,  discount  was  a  re- 
lief to  the  people  of  5  per  cent.,  instead  of  being  oppressive,  as  charged 
by  Mr.  Gamble. 

You  will  perceive,  by  reference  to  the  statement  made  below,  (which 
you  will  find  correct,)  that  I  have,  since  the  16th  of  December,  1837,  (be- 
sides disbursing  all  receipts,)  reduced  the  balance  in  my  hands  subject  to 
draft  g27,893  17i,  leaving  the  balance  now  subject  to  draft  $22,059. 

I  enclose,  also,  a  note  from  Mr.  Thomas,  cashier  of  the  Bank  of  the 
Metropolis,  which  I  hope  will  be  satisfactory  as  to  the  amount  to  my  credit 
in  the  Union  Bank  of  Florida,  which  will  be  $18,365,  after  deducting  the- 
amount  of  a  draft  on  me  (^1,950)  in  fovor  of  Colonel  Downing,  which 
was  yesterday  sent  to  them  by  Mr.  Thomas,  and  die  amount  hi  my  hands 
(stated  below)  will  be  reduced  to  §20,109. 

I  avail  myself  of  this  opportmiity  to  state  that  i  did  not  leave  Tallahas- 
see on  account  of  the  charges  preferred  against  me,  but  to  transact  im- 
portant business  in  New  York,  which  required  my  personal  presence.  1 
shall  return  to  Tallahassee  next  month. 

Very  respectfully,  your  obedient  servant, 

M.  J.  ALLEN,  Receiver. 

Hon.  Levi  Woodhury, 

Secretary  of  the  Treasury. 

Statement  referred  to  above. 

Balance  subject  to  draft  December  16,  ISSt  -  ■    4549,952  \li 

Balance  subject  to  draft  March  1,  1838       -  -  -      22,059  00 

Reduction        -  -  -   |!27,893  17i 


Amount  received  by  me  since   I  have  been  in  olTice,  to 

March  31,  1S3S   -----  $179,844  294 

M.  J.  ALLEN. 


•208  Kep.  No.   313. 

Tallahassee,  t,ipril  5,  1838. 

Sir:  I  am  informccl,  tliroiigh  ilic  receiver  of  this  place,  that  charges 
liave  been  prelerred  by  John  G.  Gamble,  Esq.,  against  his  ottlcial  con- 
duct ;  also  implicating  myself  in  the  following  manner  :  "  It  is  matter  of 
complaint  that  citizens  have  applied  to  enter  lands;  their  money  was 
refused;  and,  after  having  converted  their  bank-notes  hito  land-olfice 
money,  upon  another  application  for  land  they  have  found  it  entered  by 
the  receiver,  or  by  his  clerk,  H.  R.  W.  Andrevvs."  This  charge  is  incor- 
rect ;  if  such  complaints  have  been  made,  they  were  without  any  found- 
ation whatever.  I  have  been  engaged  as  clerk  for  the  register  for  the 
last  two  years,  during  which  time  I  have  made  several  entries  in  my  own 
name,  and  in  company  with  M.  J.  Allen ;  but  in  no  instance  has  either  of 
us  entered  land  that  had  been  applied  for,  although  applications  were 
made  almost  daily  for  land  without  the  applicants  completing  their  en- 
tries. The  course  pursued  in  the  register's  oliice  in  regard  to  the  issuing 
of  applications,  is  to  issue  only  one  application  for  the  same  piece  of  land 
on  the  same  day  ;  should  the  applicant  fail  to  complete  the  entry  before 
nine  o'clock  the  next  morning,  then  the  same  land  is  subject  to  be  entered 
by  any  other  person.  During  the  time  I  have  been  in  the  register's  office, 
no  person  has  been  refused  an  application  for  land  subject  to  entry  in 
proper  time.  I  conceive  Dr.  Allen  or  myself  have  a  right  to  enter  the 
same  land.  Although  cases  of  this  kind  occur  almost  daily,  we,  or  either 
of  us,  have,  in  no  instance,  interfered  with  applicants  in  this  manner. 

The  Tallahassee  bank  bills  were  received  in  payment  for  land,  and  rec- 
ognised as  specie,  according  to  a  distinct  understanding  between  the  re- 
ceiver and  the  officers  of  both  banks,  (as  I  was  informed  by  the  receiver 
prior  and  subsequent  to  the  suspension  of  specie  payments,)  until  about 
the  5th  or  10th  of  May  last,  at  which  time  the  Union  Bank  of  Florida 
suspended  specie  payment;  and  Mr.  R.  B.  Copeland,  who  was  then  clerk 
for  the  receiver  during  his  absence  to  Mobile  for  the  purpose  of  making  a 
deposite,  received  the  Union  Bank  bills  at  par  for  a  few  days  after  its 
suspension. 

Mr.  J.  G.  Gamble's  charge  must  apply  subsequent  to  tb.e  Union  Bank's 
su.spension,  as  the  exchange  of  money  was  unnecessary  before.  By  ref- 
erence to  the  returns  at  the  General  Land  Office  from  this  district,  which 
have  been  forwarded  up  to  the  1st  instant,  you  will  not  find  an  acre  of 
land  entered  by  M.  J.  Allen  and  myself  jointly,  or  by  me  individually,  or 
by  myself  and  any  other  person.  And  I  defy  the  world  to  say  with  truth 
that  I  have,  in  any  mamier,  entered  land  in  my  own  name,  in  company 
whh  any  person  or  persons,  procured  or  permitted  any  person  or  persons 
whatsoever  to  enter  land  for  me,  or  purchased  land  from  any  person, 
since  the  suspension  by  the  Union  Bank.  On  examination  of  the  entries, 
during  the  same  period,  I  find  M.  J.  Allen  has  entered  only  one  quarter 
section,  which  will  be  found  by  reference  to  No.  7361.  That  kind  has  not 
been  applied  for  by  any  other  .person  for  the  last  eighteen  months,  to  my 
knowledge. 

Very  respeetfullv,  your  obedient  servant. 

If.  R.  W.  ANDREWS. 

Hon.  Levi  ^VooDn^I{v, 

Secretary  of  the  Treuaiirij. 

I  certify  that  the  statements  herein  made  are  correct. 

R.  J.  HACKLEY,  Register, 


liep.  No.  313.  209 

Tallahassee,  April  5,  1838. 
I  certify  that  I  am  engaged  in  the  land  office  at  this  place,  as  clerk  for 
R.  J.  Hockley,  register,  (the  receiver's  office  being  kept  in  the  same  roon:i;) 
that  Dr.  M.  J,  Allen,  receiver,  commenced  taking  the  notes  of  Ihe  Talla- 
hassee baidvs  during  the  last  winter,  since  their  suspension  of  specie  pay- 
ment,) at  the  earnest  request  of  persons  wishing  to  secure  lands;  and  that 
he  never  took  said  bills,  or  any  other  bank  notes,  at  any  other  rate  than 
fifteen  per  cent,  discount,  to  the  best  of  my  knowledge.  I  further  certify, 
that  his  doing  so  was,  in  my  opinion,  an  important  accommodation  to  the 
people,  as  it  not  only  saved  them  the  trouble  of  running  about  to  obtain 
specie,  but  also  reduced  the  premium  five  per  cent.,  as  twenty  per  cent., 
to  my  knowledge,  was  the  usual  price  demanded  and  paid  for  specie  to 
enter  land  prior  thereto ;  and  that  since  the  receiver  has  ceased  to  take 
any  thing  but  specie  or  Treasury  notes,  twenty  per  cent,  has  been  given, 
to  my  certain  knowledge,  for  the  latter,  in  the  currency  of  the  country, 
for  the  purpose  of  entering  land. 

H.  R.  W.  ANDREWS. 


Bank  of  the  JMetropolis,  April  19,  1838. 
I  have  between  ^18,000  and  ^20,000  to  collect  on  the  Government,  for 
the  Union  Bank  of  Florida.     When  these  collections  are  made,  I  will  take 
in  payment  the  Government  draft  on  the  receiver  of  public  moneys  at 
Tallahassee. 

GEORGE  THOMAS,  Cashier. 
Hon.  Levi  Woodbury, 

Secretary  of  the  Treasury. 


Treasury  Department,  April  21,  1838. 
Sir  :  I  have  received  your  letter  of  the  19th  instant,  with  its  enclosures, 
and  will  submit  the  explanations  therein  made  to  the  President,  with 
those  you  may  offer  on  the  other  point,  as  soon  as  they  are  received.  It 
is  hoped  you  will  return  to  the  laud  office  and  attend  to  the  subject  as 
early  as  possible.  I  shall  notify  Mr.  Thomas  to-day,  that,  relying  on  his 
note,  the  Department  will  suspend  drawing  for  the  amount  he  is  to  pay 
until  the  appropriation  bills  pass,  and  the  payment  can  be  closed  here. 
I  am,  verv  respectfully,  your  obedient  servant, 

LEVI  WOODBURY, 

Secretary  of  the  Treasury. 
M.  J.  Allen, 

Receiver  of  Public  Money,  now  in  JVashington. 


April  25,  1S3S. 
Sir  :  I  have  received  your  letter  of  the  21st  instant,  and  would  ask  to 
what  other  point  (requiring  explanation)  you  refer  therein;  as  I  am  under 
the  impression  that  I  have  answered  to  all  the  charges  of  Mr.  Gamble, 
except  his  statement  concerning  my  subscription  to  the  new  stock  of  the 
Union  Bank,  which,  being  entirely  a  private  concern,  I  have  not  noticed. 


210  Bep.  No.  313. 

Our  delegate  from  Florida,  (Colonel  Downing,)  after  examining  all  the 
papers,  expresses  himself  dissatisfied  with  my  course  only  on  the  point 
of  my  having  received  the  15  per  cent,  discount,  though  he  acknowledges 
his  belief  that  this  was  done  for  the  benefit  of  the  people,  and  tliat  it  was 
a  saving  to  them;  and  I  now  conscienfiuushj  aver  the  same,  and  aver 
tliat  it  did  relieve  them  to  the  amount  of  5  per  cent.,  besides  saving  them 
trouble ;  which  facts  you  will  find  proven  by  others,  by  reference  to  the 
papers  enclosed  to  you  in  my  letter  of  the  1 9th  instant ;  and  I  can  pro- 
cure further  testimony  to  the  same  purpose,  if  deemed  necessary.  As 
evidence  of  gain  not  being  my  object,  I  told  our  delegate  (as  I  did  the 
people  at  the  time  of  making  their  entries)  that  I  would  return  the  15 
per  cent,  on  ihcir  payment  to  me  of  Government  funds  in  any  reason- 
able time;  which,  I  repeat  now  to  you,  I  am  perfectly  willing  and  ready 
to  do  in  every  case.  I  will  return  to  the  land  office  as  soon  as  practi- 
cable, which  will  be  at  an  early  date.  In  your  letter  of  the  2d  instant,, 
(of  which  I  have  received  a  copy,)  you  say  it  would  be  desirable  that  all 
my  accounts  should  be  arranged.  By  reference  to  the  officers  to  whom 
I  made  my  returns,  you  will  find  that  my  accounts  and  returns  were  all 
transmitted  up  to  the  1st  histant,  before  I  left  Tallahassee. 

Any  communication  you  may  have  to  make  me  prior  to  the  10th  of 
May,  your  will  please  direct  to  me  at  Baltimore. 

Very  respectfully,  your  obedient  servant, 

M.  J.  ALLEN, 
Receiver  at  Tallahassee,  Florida. 

Hon.  Levi  Woodbury, 

Secretary  of  the  Treasury. 


Treasury  Department,  May  1, 1838. 
Sir:  Your  letter  of  tlie  25th  ultimo  is  received  ;  hi  answer  to  which,  I 
have  to  inform  you  that  the  charge  as  to  entering  lands  is  yet  pending 
for  further  evidence  in  its  support,  and  for  rebutting  proof.  When  that 
is  receivetl  from  Tallahassee,  I  shall  lay  the  v/hole  subject  before  the 
President. 

I  am,  very  respectfully,  your  obedient  servant, 

LEVI  WOODBURY, 


M.  J.  Allen,  Esq.,  Mallimore. 


Secretary  of  the  Treasury. 


Tallahassee,  May  21,  1838. 

Sir:  I  addressed  you  on  the  18th  ultimo  ;  and  as  I  have  no  acknowl- 
edgment of  its  receipt,  I  enclose  a  copy.  I  am  yet  without  answers  to 
letters  to  persons  to  whom  I  was  referred  for  testimony.  This  may  be  in 
consequence  of  irregular  mails,  or  of  Indian  disturbances;  or  it  may  be 
that  the  parties  had  said  more  on  the  subject,  vcr/)atly,  than  they  could 
vouch  under  their  hands  ;  and  I  am  inclined  to  think  this  latter  is  the  true 
cause  of  silence. 

I  need  not  say  that  my  original  letter,  preferring  charges  against  the 
receiver,  was  written  from  a  sense  of  duty,  and  in  the  firm  belief  of  the 


Rep.  No.  313.  211 

truth  of  every  charge  stated.  I  had  heard  cliarges  made  that  lands  were 
falsely  marked  on  maps  in  the  register's  oliice  as  having  been  entered, 
which  were  not  in  fact  entered,  but,  after  applications  by  other  parties 
had  shown  their  value,  that  these  lands  icere  or  would  he  entered  by  Al- 
len, or  his  partner  Andrews,  who  is  the  dc))uty  of  the  register.  But  I  was 
not  intbrmed  of  the  parlies  who  could  testify  on  this  point,  and  therefore 
said  nothing  about  it.  You  will  find  evidence  on  this  point  in  the  letters 
of  Major  Jesse  Coe  and  General  Searcy ;  and  in  the  letter  of  Colonel 
Jacob  Robinson  you  will  see  that  entries  made  by  the  receiver,  under  the 
belief  that  the  lands  were  valuable,  were  cancelled  when  found  to  be 
worthless.  There  are  many  complaints  for  conduct  such  as  that  stated 
in  the  letter  of  Jesse  H.  Willis,  Esq. 

I  have  not  thought  it  necessary  to  obtahi  any  other  certificates  than 
that  of  John  Miller  to  prove  the  charge  of  extorting  a  high  premium  for 
entries  of  land  paid  for  in  the  current  bank-notes  of  the  country.  I  do 
not  learn  that  the  charge,  hi  numerous  instances,  and  to  a  large  amount, 
is  denied  by  Dr.  Allen. 

Before  this  letter  can  reach  your  hands,  business  will  carry  me  from 
the  Territory,  on  my  way  to  Europe.  It  is  my  intention  to  wait  upon 
you  as  I  pass  through  the  city  of  Washington. 

Very  respectfully, 

Hon.  Levi  Woodbury,  JOHN  G.  GAMBLE. 

Secretary  of  the  Treasury. 


I  do  hereby  certify,  that  in  the  month  of  February  last  I  applied  ta 
enter  land,  at  the  United  States  land  office  in  Tallahassee,  and,  not  having 
the  specie,  I  paid  the  receiver  a  premium  of  14  per  cent,  above  the  Gov- 
ernment price,  for  the  land  applied  for. 

And  on  same  day  I  saw  T.  T,  Clarady  pay  the  receiver  a  premium  of 
15  per  cent,  for  land  entered  by  him.  In  both  cases,  the  payment  Avas 
made  in  the  notes  of  the  Union  Bank  of  Florida. 

Given  under  my  hand  this  7th  day  of  May,  1838. 

JOHN  MILLER. 


Rock  Comfort,  ./Ipril  2Q,  183S. 

Dear  Sir:  At  the  time  yours  of  the  13th  instant  reached  me,  I  was 
just  starting  to  my  plantation  on  the  river.  Since  my  return  home,  I  have 
embraced  the  first  opportunity  of  giving  you  the  information  you  asked 
for. 

Some  time  in  the  fall  of  1836  I  called  at  the  land  office  in  Tallahassee, 
in  company  with  General  Searcy,  who  pointed  out,  on  the  map,  a  frac- 
tion on  Appalachicola  river  that  seemed  to  be  vacant,  and  was  told  that 
it  was  applied  for,  and  would  be  reserved  for  the  applicant  till  the  next 
day.  The  next  day  I  called  again,  with  General  Searcy,  who  desired  to 
know  whether  the  fraction  had  been  entered,  and  was  told  by  the  re- 
ceiver that  it  was,  and  that  he  was  making  out  the  certificate — I  think  it 
Avas  for  himself 

I  remain  yours,  with  great  respect, 

JESSE  COE. 

Col.  John  G.  Gamble. 


212  Hep.  No.  313. 

Tallahassee,  Maij  19,  1S38. 

Dear  Sir  :  In  answer  to  yours  of  the  7th  instant,  I  will  state,  that 
about  the  18th  November,  1836,  ISIajor  Coe  and  myself  concluded  to  en- 
ter some  land  on  the  Appalachicola  river  and  vicinity,  for  which  we  made 
application  at  the  register's  otlice,  and  obtained  it.  We  saw  other  lots 
that  we  wished  to  enter,  marked  thus  (S)  in  pencil,  which  we  were  in- 
formed had  been  entered.  We  said  no  more,  but  left  the  office.  Next 
morning,  precisely  at  nine  o'clock,  we  called  at  the  office.  I  asked  Mr. 
Andrews  (the  deputy)  to  let  me  see  the  receiver's  receipts  for  certain 
tracts  marked  as  above  stated :  for  some,  he  exhibited  the  receipts  ;  for 
the  rest,  he  said  that  he  had  none.  Dr.  Allen  (the  receiver)  was  sitting 
at  a  table  writing,  and  observed  that  he  was  then  making  them  out,  as  he 
was  the  enterer,  and  had  omitted  to  do  so.  I  observed  that  he  was  too 
late,  and  that  I  or  we  were  applicants  for  the  land.  The  deputy  register 
said  that  he  did  not  know  what  to  do,  but  that  it  had  best  be  left  to  the 
register  when  he  came.  I  then  informed  him  that  1  then  apphed  for  all 
the  vacant  land  in  the  Territory,  from  day  to  day,  until  it  suited  my  con- 
venience to  take  it  out,  and  that  I  should  contend  for  the  laud.  The  register 
rode  up  at  this  lime  ;  the  matter  was  referred  to  him,  and  he  gave  it  in 
our  favor.  This  I  believe  to  be  substantially  the  occurrence  alluded  to 
hy  you. 

Verv  respectfully,  your  obedient  servant, 

J.  G.  SEAUCY. 

Col.  J.  G.  Gamble. 


Makianna,  ^/Jpril  19,  1838. 
Dear  Sir  :  Yonr  note  of  the  13th  instant  came  to  hand,  inquiring  the 
conduct  of  the  land  oliicers  towards  me.  When  there  tlie  time  before  last, 
I  carried  on  specie  for  Dr.  Wilson  to  clear  a  piece  of  land  ;  was  warned 
not  to  designate  the  tract  until  ready  to  clear  it,  if  not  taken.  In  going  to 
the  office,  John  R.  Chapman  walked  with  me  to  ascertain  two  eighths  he 
wanted,  but  had  to  exchange  Union  money  before  he  could  take  them. 
I  advised  him  not  to  designate,  but  merely  to  cast  his  eye  over  the  map,  and 
point  at  different  Uuids.  He  did  so.  Finding  what  he  wanted  was  not 
taken,  he  inquired  of  Dr.  Allen  where  he  could  get  specie  or  Treasury 
notes  ;  he  was  answered  they  could  be  had  of  him  at  15  or  20  per  cent., 
(which  amount  I  do  not  distinctly  recollect ;)  but  1  advised  him  to  try 
elsewhere.  He  hiquired  at  the  bank,  butnono  were  there.  He  was  told 
5  per  centum  was  the  diflcrence  of  exchange  ;  but  I  believe  he  gave  one 
of  the  former  amounts, to  save  the  land.  While  in  the  office,  discovering 
such  a  watchfulness  in  certain  persons,  I  asked  to  look  at  a  map,  where 
I  knew  real  estate  lay  that  woidd  stick  to  the  owner  ;  it  was  readily 
shown  ;  near  it,  on  two  sides  of  it,  lands  had  been  entered — I  knew  in 
one  of  the  cases,  by  mistake.  I  put  my  pencil  on  ten  or  a  dozen  pieces, 
expressing  some  astonishment  that  such  lands  should  be  so  long  passed 
over,  remarking  that  I  had  not  entered  the  land  for  market,  but  for  a  set- 
tlement ;  l)Ut  when  my  new  stock  was  available,  I  would  likely  call. 
Chapman  came  up,  remarking,  the  owners  of  the  adjoining  lands  must 
share  in  that.  I  bound  him  in  honor  not  to  interfere  with  what  I  had 
marked;  he  wanted  me  to  specify  a  time  he  should  be  bound  to  wait;  I 
stated,  when  the  banks  resumed  specie  payments,  as  I  could  not  pay  15 


Rep.  No.  313.  213 

or  20  per  centum.  We  passed  off;  in  about  an  hour  we  called  to  clear 
liis  two  pieces,  and  found,  as  he  stated  to  me,  three  pieces  of  what  I  had 
noticed  taken,  scattered  tln'ough  my  selection  ;  in  examining,  I  found  the 
northeast  of  section  28  taken  by  Ur.  Allen,  in  the  midst  of  my  settlement. 
I  thought  I  had  purchased  the  west  half  of  it  in  the  sales,  but  was  mista- 
ken. 1  explained  the  mistake  to  Dr.  Allen  in  the  presence  of  Major 
Hackley.  Me  (Allen)  asked  me  100  per  cent.  I  oflered  him  .^100;  he  at 
first  refused,  but  Major  Hackley  came  out  so  strong  that  ho  finally  ac- 
ceded to  my  ofi'er.  Hackley  stated  that  he,  as  rciri.ster,  was  blamed  with 
speculation  in  his  oflice,  while  he  had  stood  aloof,  but  that  Allen  and  An- 
drews were  speculating  to  the  disadvantage  of  the  old  settlers;  and  that, 
although  Governor  Call  had  stated  they  had  a  right,  he  Thought  it  im- 
proper, having  before  them  the  maps  and  books  :  the  piece  I  got  of  him  at 
1^300  ;  the  papers  had  not  been  sent  on.  Ciiapman  further  states  that  the 
pieces  marked  "cleared,"  were  abandoned.  I  told  the  joke  to  Captain 
Mooring,  and  the  fellow,  no  doubt,  got  wind  of  a  trick,  and  drew  otf. 
Yours,  very  rcspecirullv, 

JACOB  ROBINSON. 

Col.   J.   (t.   (iAMBLE. 

P.  S.  It  is  hoped  the  directory  will  give  to  this  section  an  hidependent 
sutlicienl  branch  to  do  the  business  of  this  country  this  fall ;  I  am  per- 
suaded it  will  be  to  the  interest  of  the  institution. 


Tallahassee,  May  15,  1838. 
Dear  Sir  :  In  reply  to  your  inquiries  on  the  subject  of  a  transaction 
which  occurred  at  the  land  oflice  in  this  place,  between  Dr.  Allen,  the 
receiver,  and  myself,  about  the  latter  part  of  February  last,  I  will  state, 
first,  that  I  do  not  desire  to  be  an  accuser  of  that  gentleman,  yet  I  cannot 
deny  to  you  a  statement  of  trie  facts  you  allude  to.  My  friend,  Cieneral 
John  G,  Chapman  of  Maryland,  had  visited  this  country  for  the  ])urpose 
of  making  a  planting  establishment.  He  had  examined  several  tracts  of 
land,  and  had  reports  of  many  others  that  were  f  >r  sale  ;  one  of  which, 
belonging  to  Mr.  Keith,  lying  on  the  Chupoln  river,  Ave  thought  from  de- 
scription would  suit  him.  ile  had  confided  very  much  to  my  judgment 
and  advice  in  the  selecti(^n  he  contemplated  making,  and,  being  anxious 
to  return  home,  he  left  it  to  me  to  examine  Mr.  Keith's  land  and  report 
on  it,  wMiich,  if  done  favorably,  it  was  to  be  considered  a  purchase  be- 
tween Mr.  Keith  and  himself,  all  other  parts  of  the  bargain  having  been 
fully  concluded  between  General  Chapman  and  Mr.  Keith.  At  the  time 
it  was  convenient  for  me  to  go  and  look  at  the  land,  I  called  on  Mr.  Keith, 
then  in  Tallahassee,  to  obtain  a  description  of  the  sections  and  townships. 
From  his  papers  I  made  a  small  rough  map  with  my  pencil,  of  the  land 
sections  26,  27,  34,  and  35,  in  all  of  wiiich  Mr.  Keith's  tract  run  ;  marking 
upon  the  southwest  quarter  of  27  that  it  was  "•  vacant,"  as  Mr.  Keith  in- 
formed me.  I  then  went  to  the  land  oflice,  (for  the  receiver's  and  regis- 
ter's offices  are  kept  in  the  same  room,)  and  asked  Dr.  Allen  to  get  Mr. 
Andrews,  the  clerk  of  the  register,  to  have  me  a  perfect  map  made  out  of 
the  township  in  which  this  land  was  situated,  (which  service  he  was  in 
the  habit  of  rendering  to  all  who  desired  it,)  denoting  the  entered  and  va- 


214  «cp.  No.  313. 

cant  land,  and  to  have  it  done  by  the  next  day,  leaving,  at  the  same  time, 
the  ''rough  map,"  which  I  had  made  from  Mr.  Keith's  description  of  the 
land,  npon  whicii  was  written  in  fnll,  in  lead  pencil,  on  the  sonthwest 
quarter  of  section  27,  the  word  "vacant ;"  which  I  had  done  because  Mr. 
Keith  informed  me  that  it  was  vacant,  and  was  highly  essential  to  the 
tract,  and  ought  to  be  entered  by  General  Chapman  if  he  jnirchased,and, 
if  not,  he  intended  to  enter  it  himself.  These  remarks  of  Mr.  Keith  was 
tjie  reason  why  I  so  particularly  designated  this  piece  by  the  word  "  va- 
cant," in  pencil.  When  I  called  at  the  land  office  next  afternoon  to  get 
the  map  ordered  to  be  made  out,  (L.  A.  Thompson  was  with  me,  by  acci- 
dent, and  witnessed  what  occurred  between  Doctor  Allen  and  myself,)  it 
was  lianded  to  me,  with  the  '-'rough  map"  I  had  left.  I  observed  on  the 
one  made  for  me  that  the  southwest  quarter  of  27  was  marked  as  entered. 
I  remarked  to  Doctor  Allen  that  there  was  an  error ;  that  this  piece  was 
vacant.  He  replied,  that  he  expected  the  map  was  correct.  I  replied 
again  tliat  it  was  not,  for  I  had  examined  the  land  office  the  day  before, 
w'lien  I  ordered  the  map  made  out,  and  it  was  then  vacant,  and,  unless 
since  entered,  there  must  be  a  mistake.  He  hemmed  and  hawed,  and 
finally  acknowledged  that  he  had  entered  it.  My  lirst  impressions,  you 
may  imagine,  were  not  of  a  very  pacific  character.  I  felt  indignant,  and 
did  not  hesitate  to  so  express  myself.  Here  some  altercation  in  words 
took  place,  which  confused  the  Doctor  some  little.  He,  however,  made  the 
remark,  that  if  General  Chapman  wanted  the  land,  he  should  still  have  it. 
Without  reply,  I  left  Doctor  Allen,  and  with  Mr.  Thompson,  who  wit- 
nessed all  that  took  place,  I  consulted,  with  regard  to  the  matter.  It  was 
agreed  that,  as  (if  General  Chapman  did  not  take  Mr.  Keith's  land)  Mr. 
Keith's  interests  would  be  prejudiced,  it  would  be  better  to  make  him 
-acquainted  with  wliat  had  occurred.  This  I  did  ;  and,  upon  consultation 
with  that  i?entleman,  determined  to  wrest  the  land  from  Dr.  Allen  without 
conditions.  I  therefore  prepared  myself  with  ^200  in  specie,  and  went  to 
him  with  a  deed,  prepared  by  Mr.  Thompson,  to  pay  for  and  obtain  a 
transfer  of  the  land.  He  received  the  money,  but,  instead  of  signing  the 
deed,  altered  the  entry  in  his  book,  and  gave  me  the  usual  land-office  re- 
ceipts in  my  own  name.  In  twenty  minutes  after,  I  deeded  it  to  Mr. 
Keith,  with  the  understanding  that,  if  General  Chapman  wanted  his  land, 
this  piece  was  lo  be  transferred  at  cost.  My  impressions  are,  that  Doctor 
Allen  took  advantage  of  my  leaving  the  rough  map  with  him,  having 
upon  it  the  word  "  vacant,"  written  in  pencil  ;  and  I  came  to  this  conclu- 
sion from  having  had  repeated  complaints  of  similar  conduct  in  his  office. 
I  am,  very  respectfullv,  your  obedient  servant, 

JESSE  H.  WILLIS. 
('ol.  John   (i.   Gamiu-k. 


Treasukv  Department,  Jxine  23,  1838. 
Sir:  Copies  of  letters  from  John  G.  Gamble  and  John  C  McGehec  are 
herewith  enclosed;  and  !  have  to  request  that  you  will  furnish  such  ex- 
])lanations  and  further  evidence  as  it  may  be  in  your  power  to  offer,  as 
well  in  relation  to  the  charge  of  Mr.  McGehee  as  to  the  former  complaints 
preferred  by  Colonel  Gamble,  at  an  early  day. 

I  am,  very  respectfullv,  your  obedient  servant, 

LEVI  WOODBURY, 
Matphkw  J.  Ar.r.F.N,  Esq.,  Sccrclary  of  the  Treasury. 

Receiver  of  Fublic  Money,  TdUahaasee,  Florida. 


Eep.  TsTo.  313.  215 

Washington  City,  June  21,  1838. 

Sir:  I  have  not  been  so  fortunate  as  to  lind  you  at  home,  or  disengaged 
when  I  called  at  the  Department,  and  I  am  obliged  to  pioceed  immediate- 
ly to  New  York. 

The  enclosed  letter  from  Judge  McGehee,  in  relation  to  the  conduct  of 
the  agents  of  the  landollice,  was  received,  undercover,  last  evening;  and 
is  handed  over  to  be  placed  with  those  previously  forwarded. 

My  letter  of  ISth  April  advised  that  I  had  been  misinformed  of  the 
facts  in  relation  to  one  of  the  charges  made  against  Mr.  Allen  in  my  letter 
of  21st  February.  All  the  other  charges,  I  presume,  are  admitted  by  Mr. 
Allen;  and,  if  denied,  are  proved  by  tlie  evidence  forwarded.  I  repeat 
what  I  said  in  my  letter  of  the  ISth  April,  that  I  volunteered  in  this  busi- 
ness from  a  sense  of  public  duty,  which  must  be  performed  by  someone. 
I  had  no  personal  cause  of  complaint,  and  no  private  grief  to  urge  me  to 
the  course:  nor  did  I  anticipate  that  I  should  have  had  devolved  on  me 
the  trouble  of  hunting  up  the  evidence  in  support  of  the  charges.  I 
thought  the  investigation  would  have  been  made  in  Florida,  where  Mr. 
Allen  and  the  witnesses  would  have  met  face  to  face. 

Andrews  continues  to  be  the  representative  of  Allen  in  tlie  ofMce  of 
receiver.     He  is  still  clerk  of  the  register.   The  two  offices  are  kept  in  the 
same  room ;  and,  in  practice,  are  no  longer  checks  upon  each  other. 
Respectfully, 

JOHN  G.  GAMBLE. 

Hon.  Levi  Woodbuky, 

Secretary  of  the  Treasury. 


HicKSTOvvN,  May  II,  1838. 

Dear  Sir  :  I  have  just  received  your  letter  of  the  8th,  in  relation  to  the 
charges  against  the  agents  of  the  land  olfice  in  Tallahassee,  and  request- 
ing me  to  state  what  I  know  in  relation  to  the  entry  of  Mr.  Wallace's 
land.     I  will  do  so,  as  nearly  as  1  can  recollect. 

I  think  near  two  years  ago,  Mr.  Wallace,  who  had  purchased  an  im- 
provement, placed  money  in  the  hands  of  a  Mr.  Perry  to  enter  an  eighth 
of  land  for  iiim.  Perry  applied,  with  the  numbers  and  other  description 
of  the  land,  at  the  register's  otiice,  and  (as  Mr.  Wallace  said)  was  told 
that  there  was  not  time  then  to  prepare  tlie  papers,  but  that  if  he  would 
apply  in  the  morning,  his  business  should  be  attended  to ;  he  accordingly 
applied  the  following  day,  and  was  then  told  by  Mr.  Andrews,  the  regis- 
ter's clerk,  that  he  had  entered  that  land  himself. 

Some  short  time  afterwards  Mr.  Wallace  applied  to  me  to  inquire  into 
it  while  at  Tallahassee,  (for  I  was  then  on  my  way.)  1  called  at  the 
register's  office,  and  a])plied  to  enter  the  same  land,  and  was  promptly 
told  that  the  land  had  been  entered  by  Mr.  Andrews,  the  register's  clerk. 
I  then  asked  him  some  questions  in  relation  to  the  entry,  when  he  made 
it,  and  who  hiformed  him  of  the  land,  &c. ;  and  became  convinced,  from  his 
answers,  that  all  was  not  right,  and  gave  him  notice  that  I  would  con- 
tinue the  investigation  until  I  could  be  fully  satisfied.  I  immediately  in- 
formed Mr.  Hackloy  of  what  had  occurred,  and  my  suspicions  of  his 
clerk.  He  promised  that  it  should  innnediately  be  looked,  into.  I  set  out 
in  a  few  minutes  after  this  lor  St.   Mark's,  and  returned  the  next  day, 


216  Rep.  No.  313. 

when  Mr.  Hackley  informed  mo  that  it  was  a  mistake  of  Mr.  Andrews ; 
that  it  was  rectified,  and  that  Mr.  Wallace  had  the  land.     Hero  the  mat- 
ter ended.    I  have  no  reason  to  suppose  that  Mr.  Hackley  knew  any  thing 
of  this  matter  until  I  informed  lihn,  and  believe  lie  had  it  corrected. 
I  am,  very  respectfully,  &c. 


JOHN  C    McGEHEE. 


Colonel  John  O.  Gamblk 


Rkceiver's  Office, 

Tallaha.ssce,  Ju /y  1 2 ,  1 S 38. 

Sin:  In  your  connnnnication  of  tlie  2.3d  ultimo,  enclosing  copies  of 
letters  from  John  G.  Gamble  and  John  C.  McGeliee,  you  request  mo  to 
submit  sucii  explanations  and  further  evidence  as  I  may  be  able,  with 
regard  to  the  charge  of  Mr.  McGehee,  as  also  of  the  former  complaints 
of  Colonel  Gamble.  As  regards  the  former,  the  letter  of  Mr.  McGehee 
does  not  even  mention  my  name ;  and  the  transactions  spoken  of  by  him 
(according  to  the  dates  given  by  himself)  transpired  before  I  entered  the 
land  office,  viz:  in  May,  1836.  You  will  find,  by  reference  to  my  re- 
turns, that  I  did  not  commence  the  duties  of  receiver  till  the  12th  of 
August,  1S3(>:  however,  I  know  nothing  concerning  it,  except  that  Mr, 
Andrews  says  the  case  is  mistaken.  With  regard  to  the  charges  of 
Colonel  Gamble,  I  believe  I  have  answered  them  all  in  my  former  com- 
munications, (fo  which  I  refer  you,)  except  his  statements  concerning  my 
subscription  to  the  Union  Bank,  which,  being  entirely  a  private  matter, 
I  presumed  needed  none.  I  will,  however,  state  the  circumstances  con- 
nected with  that  transaction.  The  Union  Bank,  having  determined  to 
increase  her  capital  552,000,000,  invited  subscriptions  to  the  new  stock,  to 
be  secured  by  mortgage  on  real  estate  and  negroes.  At  the  time  I  sub- 
scribed, the  subscriptions  aniounted  to  about  $9,000,000,  (more  than  four 
times  the  amount  to  be  divided  among  the  subscribers-,)  therefore,  to  get 
what  yon  wanied,  you  were  obliged  to  subscribe  four  times  that^amoimt. 
I  desired,  at  that  time,  to  put  some  lands  which  I  had  purchased  (at 
Government  price)  into  the  bank ;  the  unimproved  lands  were  usually 
appraised  at  from  five  to  ten  dollars  per  acre,  and  the  bank  was  to  pay 
out  two-thirds  of  the  valuation  to  the  subscribers.  I  subscribed,  through 
mistake,  one  day  after  the  time  limited,  and  my  subscription  was,  on  that 
account,  thrown  out.  I  have  not  a  dollar  of  stock  in  the  bank.  I  am^ 
fearful  this  will  be  tedious  to  you;  but  I  could  not  tell  what  further  evi- 
dence you  desired,  except  you  referred  to  this  subject. 

In  conclusion,  I  will  notice  an  assertion  of  Colonel  Gambl(\  in  his  letter 
of  the  21st  ulti)no,  viz:  "that  Mr.  H.  R.  W.  Andrews  slill  continues 
representative  of  Allen  in  the  office  of  receiver."  This  is  proved  wholly 
false  by  the  enclosed  statement  of  Mr.  R.  B.  Copeland,  and  I  cannot  con- 
ceive how  Colonel  Gamble  should  be  unacquainted  with  its  falsehood ; 
and  I  now  assert  (what  J  have  before  stated)  that  Mr.  Andrews  never 
has  acted  as  my  clerk,  but  that,  when  absent  from  the  office,  I  have  uni- 
formly employed  Mr.  Copeland  as  my  clerk  and  agent.  " 
I  am  respectfully,  your  obedient  servant, 

M.  J.  ALLEN,  Rcceioer,  S^-c. 

Hon.  Lkvi  Woodbury, 

Secretary  of  the  Treasury. 


Rep.  No.  313.  217 

Tallahassee,  July  12,  1S38. 
1  certify  that  1  have  been  acthig  as  clerk  to  the  receiver  at  this  place 
since  tlie  Gth  of  April  last;  which  fact  is  well  kiiowti  in  Tallahassee,  and 
especially  at  the  Union  Bank  of  Florida,  of  which  John  G.  Gamble  is 
president,  and  where  I  have  made  special  deposites  of  what  specie  I  have 
received  since  the  date  aforesaid,  to  the  credit  of  M.  J.  Allen,  receiver. 

R.  B.  COPELAND. 


Reci:ivek's  Office, 

Tallahassee,  July  23,  1S38. 
Sir  :  There  remains  of  the  amount  I  had  deposited  (as  receiver)  in  the 
Union  Bank  of  Florida  (at  the  time  of  their  suspension  of  specie  payments) 
the  sum  of  ;S12,414  63  ;  which,  relying  on  your  letter  of  the  21st  of  April, 
I  beg  leave  to  request  you  will  draw  for,  through  George  Thomas,  Esq., 
cashier  of  the  Bank  of  the  Metropolis,  according  to  the  purport  of  the 
letter  above  alluded  to,  and  the  note  of  Mr.  Thomas  addressed  to  you  on 
the  19th  of  April  last ;  and  1  would  bo  pleased  that  that  were  doneimme- 
diately,  that  that  matter  might  be  closed. 

-The  Treasurer  has  overdrawn  the  specie  on  hand,  as  shown  by  my  last 
weekly  return,  by  upwards  of  i5 3,000 ;  in  consequence,  I  presume,  of  not 
knowing  of  the  arrangement  above  alluded  to,  and  my  weekly  returns  of 
specie  subject  to  draft  including  that  sum  in  the  Union  Bank,  viz  : 
^12,414  63.  Your  attention  to  this  subject  will  greatly  oblige  me. 
I  am,  very  respectfully,  sir.  vour  obedient  servant, 

M.  J.  ALLEN, 

Receiver. 
Hon.  Levi  Wooduury, 

Secretary  of  the  Treasury    fVashington  city. 


Treasury  Department, -■^j/^^mY  4,  1838. 
Sir  :  You  are  informed,  in  reply  to  your  letter  of  the  23d  ultimo,  that 
all  was  drawn  on  the  bank  which  Mr.  Thomas  was  disposed  to  pay ;  and 
that  no  unsettled  alTairs  of  the  bank  exist  here.  The  bank  at  Tallahassee 
knows  and  can  inl'orm  you  of  the  details.  The  Treasurer  has  been  di- 
rected not  to  overdraw  at  any  time;  and  it  is  hoped  that  his  drafts  will 
be  promptly  met  by  you. 

I  am,  very  respectfullv,  vourobedient  servant, 

LEVI  WOODBURY, 
M.  J.  Allen,  Esq.,  Secretary  of  the  Treasury. 

Receiver  of  Public  Moiuys,  Tallahassee,  Florida. 


Treasury  Department,  February  10,  1794. 
Sir  :  The  enclosed  letter  of  the  27th  of  last  nionth,  from  the  collector 
of  Tappahamiock,  relates  to  a  subject  equally  delicate  and  disagreeable. 
It  is  my  duty  to  add,  that  bills  have  returned  protested  to  the  amount  of 
3,000  dollars. 

15 


218  Eep.  No.  313. 

This  conduct,  though  I  trust  proceeding  iVoni  no  ill  motive  in  the  col- 
leetor,  is  ol"  a  nature  so  fatal  to  the  punctual  collection  oi'  the  revenue,  and 
at  the  same  time  so  vitally  injurious  to  the  public  credit,  that  I  cannot 
forbear  to  submit  it  as  my  ojiinion  that  tlie  public  good  requires  the  super- 
seding of  the  officer. 

With  perfect  respect,  &c., 

ALEXANDER  HAMILTON. 
To  the  PRKsiDENr  of  the  United  States. 


Treasury  Department,  June  16,  1794. 

Sir  :  It  is  with  regret  1  inform  you  that  another  collector  has  suffered 
Treasury  drafts  to  return  unpaid,  which  were  drawn  upon  moneys  re- 
ported by  him  to  be  in  liis  hands — Abraham  Archer,  Esq.,  of  Yorktown. 
Enclosed  are  letters  of  apology  on  the  subject.  All  the  drafts  which  were 
at  first  declined  were  afterwards  paid. 

I  perceive  nothing  substantially  to  distinguish  this  case  from  that  of  the 
collector  of  Tappahannock.  who  was  lately  superseded  on  a  similar  ac- 
count. Nor  can  I  forbear,  however  painful  the  task,  to  submit  it  as  my 
opinion,  in  this  as  in  that  case,  that  the  good  of  the  public  service  requires 
a  displacement  of  the  officer.  Punctuality  in  this  respect  is  too  indispen- 
sable not  to  be  made  the  invariable  condition  of  continuance  in  office. 
With  perfect  respect,  &c. 

ALEXANDER  HAMILTON. 

To  the  PRiisiDENT  of  the  United  States. 


Treasury  Department,  February  18,  1795. 

The -Secretary  ot  the  Treasury  has  the  honor  respectfully  to  submit  to 
the  President  of  the  United  States  certain  documents,  by  which  it  appears 
that  John  Muir,  collector  for  the  district  of  Vienna,  in  Maryland,  has  neg- 
lected his  duty  in  failing  to  collect,  or  to  institute  in  season  suits  for  the 
recovery  of,  bonds  for  duties  due  to  the  United  States. 

The  collector  has  moreover  failed  to  pay  certain  drafts,  drawn  on  him 
by  the  Treasurer  of  the  United  States,  for  moneys  appearing,  by  returns  to 
the  Treasury,  to  be  on  hand ;  and  in  this  respect  lie  is  found  to  be  in  the 
same  predicament  as  tiie  collector  of  York  and  Tappahannock  who  were 
superseded. 

The  Secretary  is  firmly  of  o])inion  that  the  good  of  the  public  service 
re(juires  that  this  ollicer  should  be  displaced ;  and,  from  inquiries  which 
he  has  made  of  Mr.  Murray,  of  the  House  of  Representatives,  he  is  in- 
duced to  believe  that  James  Frazier  is  a  fit  character  to  succeed  to  the- 
office. 

AH  wliich  is  most  respectfully  submitted. 

OLIVER  WOLCOTT, 
Secretary  of  the  Treasury. 

To  the  President  of  the  Ujiited  States. 


[Mr.   Allen  is  indebted   to  the  Government  twenty-six  thousand  six. 
liundred  and  ninety-one  dollars  and  fifty-seven  cents,  (;^26,691   57.)] 


Rep.  No.  313.  21S 

11. — Correspondence  ivilli  John  Spencer,  receiver  al  Fort  IVayne. 

Treasury  Department,  April  25,  1836. 
Sir  :  Your  letter  ol'the  4th  instant,  enclosing  a  return  for  the  month  of 
March,  and  a  quarterly  account  for  the  quarter  ending  on  the  31st  ultimo.; 
is  received.  Quarterly  returns  or  accounts  are  not  required  to  be  made  to 
the  Secretary  of  the  Treasury,  but  to  the  Commissioner  of  the  General 
Land  Office,  as  your  instructions  from  that  oihcer  will  inform  you.  The 
returns  required  to  be  made  to  the  Secretary  of  the  Treasury,  as  you  will 
perceive  from  the  enclosed  circular,  are  7?ion//i/y,  being  duplicates  of  simi- 
lar statements  rendered  to  the  General  Land  Office,  and  corresponding,  in 
form,  to  that  for  March,  received  with  your  letter.  As  these  statements 
for  January  and  February  last  have  not  been  received  at  the  Department, 
I  must  claim  your  attention  to.  the  omission,  and  insist  on  their  transmis- 
sion, in  future,  immediately  after  the  close  of  each  month.  At  the  same 
time,  I  would  also  claim  your  strict  attention  to  the  regulations  of  the  De- 
partment in  respect  to  the  periodical  deposites  of  the  public  money,  and  to 
the  duty  of  transmitting  the  usual  evfidences  of  such  deposites  to  the  Sec- 
retary of  the  Treasury,  as  the  instructions  require. 
I  am.  very  respectfully,  &c. 

LEVI  WOODBURY, 
Secrelary  of  the  Treasury.. 
Colonel  John  Spi:ncer, 

Receiver  of  Public  Moneys,  Fort  Wayne,  Indiana. 


Treasurv  Department,  May  23,  1836. 
Sir  :  Since  the  date  of  my  letter  to  you  of  the  25th  ultimo,  your  returruB 
for  the  month  of  April  have  been  received,  from  which  I  perceive  that  the 
public  moneys  in  yoiu'  hands  on  the  30th  ultimo  amounted  to  the  sum  of 
^247,251  64,  which  amount  is  the  accumulated  receipts  of  your  office  since 
the  1st  of  January  last.  You  cannot  but  be  -aware  that  the  retention  of 
the  public  moneys  in  your  hands  beyond  the  period  of  one  month,  unless 
the  receipts  of  such  month  be  less  than  v^lO,000,  is  a  violation  of  your  in- 
structions. The  object  of  this  letter  is,  first,  to  require  that  the  whole  bal- 
ance on  hand  at  the  time  of  the  receipt  of  this  letter  shall  be  inmiediately 
deposited,  and  a  certificale  of  such  deposite  transmitted  to  the  Departmeni 
without  delay  ;  second,  to  inform  you  that  the  Department  cannot  over- 
look the  omission  to  do  so,  or  your  future  neglect  to  deposite  monthly,  and 
to  transmit  your  monthly  returns,  accompanied  by  the  evidence  of  your 
deposite,  in  time  to  be  received  at  this  oiiice  within  the  month  next  pre- 
ceding that  for  which  the  return  is  rendered  ;  third,  that  any  neglect  or 
inattention  to  these  requirements,  unless  satisfactorily  accounted  for,  wLU 
require  of  me,  from  a  sense  of  official  duty,  that  you  be  reported  to  the 
President,  with  a  recommendation  that  you  be  removed  from  office. 
I  am,  very  respectfully,  &c. 

LEVI  WOODBURY, 
Secret a7'y  of  the  Treasury. 
Col.  John  Spencer, 

Receiver  of  Public  Moneys,  Fort  fVayne,  Indiana. 


220  Rep.  No.  313. 

Tkeasuky  DEPAUT^rENT,  JuJy  S,  1S36. 
Sir  :  Since  my  letter  to  you  of  the  2.9th  ultimo,  directing  an  examina- 
tion to  be  made  into  the  state  of  the  land  office  at  Fort  Wayne,  Indiana, 
the  returns  of  the  receiver  for  the  month  of  May  have  been  received,  and 
exhibiting  a  balance  of  money  in  his  hands,  at  the  close  of  that  month, 
amounting  to  ^601,380  49.  He  has  transmitted,  under  date  of  the  27th 
iihimo,  a  certificate  of  deposite  in  the  "  Brunch  State  Bank  o{  Indiana," 
made  on  tlie  15th  of  ttie  same  month,  of  yS540,433  09,  leaving  a  balance 
m  his  hands  of  $60,947  40. 

I  have  to  request  that  you  will  instruct  Mr.  West,  the  examiner  refer- 
ired  to  in  my  letter  above  stated,  to  make  special  inquiry  into  this  matter, 
and  report  to.the  Department  the  result. 

I  am,  very  respectfully,  &c. 

J.EVI  WOODBURY, 

Secretary  of  the  Treasury. 
Ethan  A.  Buo\v>-,  E-q., 

Commissioner  of  the  General  Land  Office. 


Tkeasukv  Dm'AUTjNfEM',  July  8,  1836. 
Sir:  Your  account  as  receiver  of  public  moneys  at  Fort  Wayne,  for 
the  month  of  May  last,  with  the  enclosed  certificate  of  deposite,  in  the 
Branch  State  Bank  of  Indiana,  for  $540,433  09,  has  been  received,  leav- 
ing a  balance  in  your  hands  of  §60,947  40.  I  have  to  request  to  be 
informed  why  the  whole  amount  in  your  hands  was  not  deposited  at  the 
same  time  with  tht-  first-mentioned  sum.  ' 

I  am,  very  respectfully,  &:c., 

LEVI  WOODBURY, 
John  Spencer,  Esq.,  Receiver,  Secretary  of  the  Treasury. 

Fort  IViiyne,  Indiana. 


Receiver's  Office, 

Fori  Wayne,  July  29,  1836. 

Sir:  Yours  of  th^  8th,  urging  an  explanation  why  the  balance  of  the 
money  on  hand  was  not  deposited  at  the  time  I  made  the  last  deposite, 
obliges  me  to  state  to  you,  that,  owing  to  the  great  amount  of  money  that 
1  had  whh  me  at  that  time,  (for  I  had  the  whole  amount  due  from  me  to 
the  Government  at  the  tinu;  I  left  the  office,  except  the  specie  that  came 
in  after  the  wagon  that  hauled  the  silver  had  left,  which  was  about  one 
week  before  I  left  myself,)  the  cashier  of  the  bank  declined  receiving  in 
that  deposite  tlie  Eastern  uioney  and  drafts,  viz  :  on  the  safety-fund  banks 
of  New  York,  and  the  Farmers  and  Mechanics'  Bank  of  Michigan  ;  which 
I  received,  supposing  that  they  were  embraced  in  his  list  of  funds.  The 
Eastern  funds,  I  left  in  the  bank  at  Richmond,  with  the  cashier's  promise 
ihat  they  should  go  in  the  next  deposite.  The  Michigan  paper  I  sent  to 
Michigan  Bank ;  which  was  deposited  there,  and  the  certificate  for- 
warded to  the  Commissioner  of  the  General  Land  Office  in  the  last  quar- 
terly report 


Hep.  No.  313.  221. 

The  bank  at  Richmond  received  that  dcposite  with  great  rehictance, 
being  fearful  that  the  Government  might  draw  the  funds  out  before  they 
could  make  their  arrangement.  The  money  is  yet  in  the  bank,  for  the 
Government.  I  shall  leave  without  delay,  to  make  deposite,  having 
received  information  that  the  bank  at  Indianapolis  would  receive  ihe 
deposites,  notwithstanding  the  letter  from  the  president  of  that  bank, 
which  was  the  cause  of  my  detention  from  making  the  deposite  imme- 
diately after  the  recei))t  of  your  letter  directing  me  to  deposite  in  that 
bank,  instead  of  that  at  Richmond. 

Copy  of  letter  from  president  of  Branch  Bank  at  Indianapolis^  dated 

July  14,  1836. 

Sir  :  Having  understood  that  the  Secretary  of  the  Treasury  has  directed 
you  to  deposite  moneys  received  at  your  otiice  for  public  lands  at  this 
branch,  I  deem  it  proper  that  I  should  apprize  you  that  the  directory 
have  it  in  contemplation  to  decline  for  the  present  receiving  any  further 
deposites,  believing  that  we  cannot  accede  to  the  terms  embraced  in  the 
late  act  of  Congress  in  relation  to  the  deposites,  without  too  great  a  sacri- 
fice of  interest  to  this  institution. 

I  am  authorized  to  say  to  you,  the  board  of  directors  of  this  branch, 
unwilling  to  add  to  its  responsibility  so  heavy  an  amount  as  would  likely 
be  your  next  payment,  have  decided  not  to  receive  the  deposite  from  that 
office. 

Respectfully,  yours, 

HENRY  BATES,  President 

John  Spencer,  Esq.,  Receiver. 

Hereafter,  I  assure  you  that  the  deposites  will  be  made,  so  far  as  I  ana 
concerned,  in  strict  accordance  with  my  instructions. 

Respectfully,  sir,  I  am  your  humble  servant, 

JOHN  SPENCER. 
Hon.  Levi  Woodburv, 

Secretary  of  the  Treasury. 


Branch  Bank,  Indianapolis,  ^iugust  17,  1836. 

We  have  this  day  received  from  John  Spencer,  Esq.,  receiver  of  public 
moneys,  the  amount  below  named  of  unbankable  money,  at  a  discount 
as  follows : 
l^arge  notes  on  country  banks,  New  York        •     S35,000  00 

1 2  per  cent,  off  -  -  -  -  525  00 


Michigan,  Ohio,  Illinois, and  New  York,  (small)       24,475  00 
2  per  cent,  off  -  -  -  -  429  50 


Drafts  on  Bank  of  Michigan     -  -  -       13,073  69 

1  per  cent,  off  -  -  -  -  130  73 


§34,475  00 
21,045  50 
12,942  96 


'222  Eep.  No.  313. 

The  above  amount  is  included  in  the  receipts  given  Mr.  Spencer  on  this 
day  for  credit  Treasurer  United  States. 

THOS.  H.  SHARP,  Teller. 

I  certify  that  the  above  is  a  true  copy  :  August  20,  1836. 

JOHN  M.  WILT, 
Clerk  in  Receiver's  office,  Fort  Wayne. 

Note. — Mr.  Spencer  offers  the  above  as  a  proof  that  he  was  obliged  to 
snake  a  discount,  or  sustain  a  loss,  when  depositing  at  Indianapolis. 
I  have  not  time  to  send  a  duplicate  of  the  above. 


Treasury  Department, 

August  13,  1836. 

Sir  :  Your  letter  of  the  28th  ultimo,  enclosing  your  monthly  return  for 
/une,  is  received.  Seeing  that  the  balance  in  your  hands  amounts  to  the 
sum  of  ^100,599  32,  I  must  require  that  the  same  be  transmitted  to  the 
bank  of  deposite  forthwith,  and  request  you  to  explain  why  the  amount 
has  been  so  long  retained  in  your  hands. 

No  answer  to  my  letter  of  the  8th  ultimo  has  been  received. 

I  am,  &c. 

LEVI  WOODBURY, 

Secretary  of  the  Treasury. 
Receiver  of  Public  Money,  Fort  Wayne,  Indiana. 


Receiver's  Office, 
Fort  Way?ie,  August  22,  1836. 

Sir  :  I  have  just  received  yours  of  the  13th  instant,  acknowledging  the 
receipt  of  my  letter  of  the  28th  ultimo,  and  returns  for  that  month.  It 
also  presents  the  inquiry,  why  the  balance  of  .^100,599  32  was  retained 
so  long  on  hand,  and  observes  that  no  reply  had  been  received  to  your 
letter  of  the  Sth  ultimo. 

In  answer  to  the  above,  I  reply,  that  an  answer  at  some  length  was 
written  to  your  letter  of  the  8th,  dated  July  29,  which  was  probably  on 
Jhe  way  when  you  wrote  on  the  13th  instant,  and  would  no  doubt  be 
leceived  soon  after.  The  amount  of  funds  in  the  Richmond  bank,  which 
I  spoke  of,  was  §52,831  39,  and  is  included  in  the  enclosed  certificate  of 
deposite. 

My  reasons  why  the  balance  of  $100,599  32  was  so  long  retained,  are 
as  follows:  On  the  20th  of  June  I  returned  from  depositing  at  Richmond. 
From  this  time  to  the  26th  I  was  busied  in  procuring  security  to  my  new 
bond,  according  to  the  requisition  contained  in  the  circular  from  the  Com- 
missioner of  the  Genenil  Laud  Olfice  of  25tli  May,  and  which  was  re- 
ceived on  the  4th  of  June,  while  I  was  absent.  On  ihe  26th  I  started  for 
Rockvillc  to  have  ir  approvcxl,  and  returned  on  the  10th  of  July.  The 
office  was  opened  on  the  11th,  and  the  extraordinary  press  of  business 
rendered  it  advisable  that  I  should  remain  for  a  few  days  until  the  press 


Eep.  No.  313.  22 

•would  be  over.  While  preparing  the  funds  for  depositc,  which  had  accu- 
mulated to  a  large  amount,  I  received  the  letter  from  the  president  of  the 
branch  at  Indianapolis,  (a  copy  of  which  I  sent  you  in  my  letter  of  2.9th 
ultimo,)  refusing  the  dcpositea  from  me.  Afterwards,  I  received  another 
letter  accepting  them;  and,  as  soon  as  I  could  thereafter,  I  left  to  make 
the  deposite,  the  result  of  which  is  contained  in  the  enclosed  certificate. 

I  beg  leave  to  repeat  tlie  assurance  that  every  attention  shall  be  given 
to  the  subject  of  depositing  which  its  importance  and  my  duty  require. 

JOHN  SFENCER,'  Receiver. 

Hon.  Levi  Woodbury, 

Stcretary  of  the  Treasury. 


Office  of  the  State  Bank  of  Indiana, 

.dt  Fort  IVayne,  August  22,  1836. 

Understanding  that  reports  are  in  circulation  in  regard  to  the  course 
that  has  been  pursued  by  Colonel  John  Spencer,  receiver  of  public  moneys 
in  this  place,  in  receiving  at  a  discount  uncurrent  paper  in  payment 
for  lands,  which  are  calculated  to  injure  him  in  his  relation  to  the  Gov- 
ernment, I  take  this  opportunity  of  stating  such  facts  upon  this  subject  as 
have  come  within  my  knowledge.  The  situation  which  I  have  occupied 
for  some  time  in  this  branch  bank,  the  daily  intercourse  which  I  have  had 
with  the  receiver,  and  the  consequent  knowledge  which  I  have  obtained 
of  the  manner  in  which  he  has  discharged  his  official  duties,  lead  me  to 
the  opinion  that  the  reports  alluded  to  have  originated  either  in  misun- 
derstanding or  misrepresentation. 

That  paper  not  authorized  by  the  cashier  of  the  deposite  branches  at 
Richmond  and  Indianapolis  to  be  received  by  the  receiver  has  in  some 
instances  been  taken  by  him  at  a  small  discount,  is  not  denied  by  Colonel 
Spencer  himself ;  but  I  take  pleasure  in  saying,  that  in  no  instance  within 
my  knowledge  has  this  been  done  when  the  necessary  exchanges  could 
have  been  efiected  at  this  bank  or  with  individuals.  Owing  to  the  great 
amount  of  the  sales  of  the  public  lands  in  this  district  for  some  months 
past,  and  the  fact  that  a  large  majority  of  land-buyers  have  come  here 
unprovided  with  the  right  kind  of  funds,  the  demand  upon  u«  for  land- 
office  money  has  been  greater  than  we  could  supply.  Under  these  cir- 
cumstances, if  exchanges  had  not  been  made' by  the  receiver,  many  indi- 
viduals who  had  come  a  long  distance  would  have  been  under  the  neces- 
sity of  departing  without  the  lands  they  had  in  many  instances  selected, 
or  travelling,  at  the  risk  of  losing  their  selections,  at  least  one  hundred 
miles,  over  roads  the  greater  part  of  the  year  almost  impassable,  to  obtain 
the  riglit  kind  of  funds.  It  is  under  such  circumstances,  when  the  pur- 
chaser could  be  accommodated  nowhere  else,  that  uncurrent  paper  has 
been  taken  by  the  receiver  at  a  discount. 

I  feel  very  confident  that  these  exchanges  have  not  been  made  at  the 
desire  of  Colonel  Spencer.  In  many  instances,  within  my  own  knowl- 
edge, he  has  peremptorily  refused  to  make  the  desired  exchanges;  and  in 
all  instances  1  doubt  not  that  he  has  been  induced  to  do  it,  ratlier  on  ac- 
count of  the  pressing  solicitation  of  purchasers,  than  with  a  view  to  his 
own  emolument.  In  some  cases,  when  we  could  not  afford  the  neces- 
sary acconmiodation  in  bank,  I  have  suggested  to  Colonel  Spencer  the 


224  Kep.  No.  313. 

necessity  of  his  taking,  in  some  instances,  at  such  rate  of  discount  as  would 
satisfy  him  for  tlie  expenses  of  making  the  re-exchanges,  other  than  land- 
office  money. 

I  doubt  not  that  the  exchanges  alhided  to  have  been  made  by  the  re- 
ceiver with  rehictance,  and  at  a  small  discount  ;  and  that  if  he  is  at  fault 
in  this  matter,  he  has  erred  in  liberality  towards  land  purchasers,  and  a 
desire  to  accommodate  them,  and  not  with  the  intention  of  advancing  his. 
individual  interests. 

I  give  the  foregoing  to  be  used  by  Colonel  Spencer  as  he  may  deem 
proper. 

H.  McCULLOCI^,  Cashier. 


Madison,  ,higust  31,  1S36. 
Sir  :  I  am  informed  that  some  things  are  stated  recently  to  the  prejudice- 
of  Colonel  John  Spencer,  receiver  at  Fort  Wayne ;  and  I  am  requested 
to  write  you.  In  doing  so,  I  can  only  say  that  I  have  been  gratified  in 
learning  that  his  deposites  have  been  made  to  your  satisfaction;  and,  if 
so,  I  hope  that  minor  matters,  if  mere  irregularities,  will  be  overlooked. 
He  is  reputed  to  be  an  honest  and  honorable  man,  and  I  do  \\^i  believe 
tliat  he  has  intentionally  either  done  wrong  or  violated  his  instructions. 
It  would  to  some  extent  produce  excitement  if  he  were  removed,  ibr  he 
has  many  warm  and  influential  friends  both  at  Fort  Wayne  and  in  Dear- 
born county,  from  which  he  removed  to  his  present  residence.  Better  let 
it  be. 

With  much  respect, 

WILLIAM   HENDRICKS. 
Hon.  Levi  Woodbury, 

Seo'ctary  of  the  Treasury. 


Treasury  Department, 

September  2,  183(5. 
Sir:  I  have  received  the  report  of  Mr.  West  upon  the  transactions  of" 
the  land  oliice  under   your  charge  ;  upon  which  I  beg  leave  to  remark, 
that  the   Department  trusts  yoiu"  deposites  will  hereafter  be  promptly 
made,  and  that  no  exchanges  whatever  of  money  will  take  place  on  any 
terms,  as  they  open  a  door  to  improper  practices  and  unfounded  imputa- 
tions.    I  am  ha{)py  to  add,  that  the  Department  can  readily  see  the  diffi- 
culties in  resisting  importunities  to  exchange  money  and  to  receive  what 
is  not  permitted  by  regulation.     It  can  also  duly  aj)preciate  your  excuses 
for  not  making  more  prompt  returns  and  more  fre(|uent  deposites;  but  it 
trusts  that,  hereafter,  a  more  rigid  conformity  to  your  instructions  will  be 
practicable,  and  will  remove  all  cause  of  apprehension  and  complaint. 
I  am,  very  respectfully,  your  obedient  servant, 

LEVI  WOODBURY, 
Secretary  of  the  Treasury- 
Col.  John  Spencer, 

Receiver,  Fort  IVayne. 


Kep.  No.  313.  225 

Treasury  Dkpartment, 

September  1,  1S36. 

Sir  :  V'our  letter  of  the  3 1st  ultimo  is  received,  and  I  am  happy  to  iii- 
lorm  you  that  Mr.  Spencer's  explanations  have  been  such  tiiat  he  will, 
probably,  continue  in  office. 

I  am,  very  respectfully,  your  obedient  servant, 

LEVI  WOODBURY, 


Hon.  William  Hendricks, 

Madison,  Indiana. 


Sccretaru  of  the  Treasury. 


Receiver's  Office, 
Port  Wayne,  October  21,  1836. 
Sir  :  This  is  to  inform  you  that  I  have  forwarded  to  the  deposite  bank 
one  hundred  and  four  thousand  dollars,  in  silver,  there  to  remain  until  I 
arrive  with  the  gold  and  paper  money. 

My  democratic  friends  think  that  I  ought  not  to  leave  until  after  we 
hold  our  election  for  President,  on  the  7th  November,  which  I  have  con- 
cluded to  await ;  and  shall  leave  on  that  evening,  or  the  next  morning,  to 
deposite,  with  all  the  funds  on  hand  up  to  that  time.  I  shall  write  yoii 
again  before  I  leave.  The  sales  are  rapid,  mostly  paid  in  gold  and  silver. 
My  quarterly  report  will  be  forwarded  by  next  mail  for  last  quarter, 
which  ought  to  have  been  done  sooner,  only  for  the  want  of  help  in  the 
office.  Hereafter,  I  think  I  can  get  my  reports  otf,  without  much  delay, 
after  the  close  of  the  month  and  quarter. 

I  am  yours,  respectfully, 

JOHN  SPENCER,  Receiver. 
Hon.  Levi  Woodburv, 

Secretary  of  the  Treasury. 


Receiver's  Office, 
Fort  Wayne,  November  8,  1S36. 
Sir  :  To-day  I  leave  to  deposite  all  the  funds  that  I  have  on  hand.     I 
shall  probably  leave  them  at  Lawrenceburg.     During  my  absence,  the 
office  will  be  in  the  care  of  John  M.  Wilt.     I  shall  be  gone,  probably, 
about  two  weeks. 

Respectfully,  your  obedient  servant, 

JOHN  SPENCER. 
Hon.  Levi  WooDiiUuv, 

Secretary  of  the  Treasury. 


Cincinnati,  November  28,  1836. 
Sir  :  Herewith  you  will  receive  the  certificates  of  my  last  deposite. 
I  have  been  much  longer  on  the  road  than  I  had  expected,  owing  to  the 


22G  Kep.  No.  313. 

badness  of  the  same.  We  have  had  very  wet  weather,  which  caused 
high  waters.  I  am  now  on  my  way  to  tlie  office,  and  shall  write  you 
more  fully  when  I  get  home. 

I  am  yours,  respectfully, 

JOHN  SPENCER, 
Receiver  of  Public  Moneys,  Fort  Wayne. 
Hon.  Levi  Woodbury, 

Secretary  of  the  TVeasury. 

N.  13.  I  had  sent,  some  time  since,  ^21,000  to  the  care  of  the  Com- 
mercial Bank,  until  my  arrival ;  the  cashier  then  informed  me  that  he 
had  placed  the  same  to  the  credit  of  the  Treasurer  of  the  United  States, 
which  caused  the  two  receipts  of  deposite.  The  charges  on  my  books 
shall  be  the  same  as  if  all  had  been  made  together. 

JOHN  SPENCER. 


Receiver's  Office, 

Fort  Wayne,  January  18,  1837. 

Sir  :  Enclosed  I  send  my  certificate  of  deposite  for  one  hundred  and 

nineteen  thousand  one  hundred  and  sixty-three  dollars  and  eighteen  cents, 

from  Branch  Bank  of  the  State  of  Indiana,  at  Lawrenceburg. 

jgll9,163-fVV 

Respectfully,  yours, 

JOHN  SPENCER. 

Hon.  Levi  Woodbury, 

Secretary  of  the  Treasury. 


LIST  OF  FUNDS. 


Scrip 

Cold 

Silver 

Cincinnati 

Pittsburg 

Kentucky 

Indiana 

New  York 

Philadelphia    - 

Baltimore 


-  §1,212 

50 

-  15,698 

31 

-  30,559 

67 

-   4,971 

00 

616 

00 

545 

00 

■  18,361 

00 

679 

00 

620 

00 

50 

00 

§73,312 

48 

Kep.  No.  313. 


227 


The  United  Slates  in  account  with  John   Spencer,  receiver  of  public 
moneys  at  Fort  JVayne,  Indiana. 

Dr. 


183G. 

By  cash  paid  into  the  Branch  Bank  of  the  State 

Dec.  31 

iM  Indiana,  at  Lawrenceburg,  to  the  credit  of 

tlie  Treasurer  of  the  United  States   - 

§119, 163 

IS 

Risk  in  depositing  the  above  amount — distance 

200  miles     ----- 

238 

32 

Compensation  for  traveUing — 400  miles,  at  14 

cents             -             -             -             -             - 

56 

00 

Military  bounty  land  scrip 

1,212 

50 

Allen  Hamilton,  bill  for  stationary 

167 

75 

F.  P.  Tinkham's  bill  for  cabinet  work 

80 

00 

Ames  Compton's  bill  for  transporting  specie    - 

600 

00 

Osborn  Thomas's         do.                   do. 

55 

00 

Erroneous  entry  by  Joseph  Lenge,  refunded  - 

50 

00 

Undercharged  for  depositing  in  last  month's 

statement      ----- 

10 

00 

Register's  salary  and  commission 

750 

00 

Receiver's         do.             do. 

750 

00 

Balance  on  hand  carried  to  the  credit  of  the 

United  States  in  next  monthly  report 

15,545 

19 

Sl38,671 

95 

Dec.     1 

Cr. 
By  this  amount  remaining  on  hands,  as  per 

last  monthly  report                -             .             . 

$65,359 

47 

31 

Amountreceived  from  individuals  in  the  present 

month           -             .             -             -             _ 

73,312 

48 

$138,671 

95 

JOHN  SPENCER,  Receiver. 


House  of  Representatives, 

H'ashington  City,  January  5,  1837. 
Sir  :  I  desire  to  see  the  report  of  the  examiner  of  the  land  office  at  Fort 
Wayne,  la.,  made  by  Mr.  West  last  fall,  and  all  the  papers  connected 
with  and  relating  to  that  report  and  examination,  including  the  letters 
and  correspondence  of  such  officers  of  the  Government,  and  members 
of  Congress  of  either  House,  as  may  be  on  file  in  the  Treasury  Depart- 
ment upon  that  subject,  or  in  reference  to  the  alleged  delinquency  of  the 
receiver  of  public  moneys  at  that  place ;  and  as  these  papers  are  volu- 
minous, and  I  could  not  well  examine  them  satisfactorily  in  your  offitc,  1 
desire  copies  of  the  whole,  as  above  referred  to.     As  the  letters  and  cor- 


228  Rep.   Xo.   313. 

respondence  of  gentlemen,  the  copies  of  which  I  seek,  are  upon  a  subject 
of  a  pubUc  nature  in  reference  to  a  pubUc  otiicer,  I  have  supposed  they 
might  be  seen,  and  that  it  is  not  improper  to  ask  copies,    I  would  be  glad 
to  get  those  copies  as  early  as  may  suit  your  convenience. 
I  have  the  honor  to  be,  &c. 

J.  McCARTY. 
Hon.  Levi  Woodbuky. 


Treasury  Department, 

January  6,  1837. 
Sir  :  Your  favor  of  yesterday  has  been  received  ;  and  I  have  since 
looked  more  fully  into  the  papers  and  correspondence  referred  to,  and  re- 
gret to  find  them  so  voluminous,  and  some  of  them  of  such  a  personal 
character,  that  it  would  not  comport  with  the  general  rules  of  the  Depart- 
ment to  furnish  copies  of  them,  unless  to  individuals  interested  or  assail- 
ed in  tliem,  or  on  a  proper  call  by  Congress,  I  will,  how^ever,  be  happy 
to  state  to  you  their  substance,  or  furnish  copies  of  any  particular  papers 
you  may  designate,  as  in  your  own  opinion  affecting  your  private  interests 
or  character,  if,  on  examination,  it  be  found  that  they  do.  But  if  none  are 
of  that  description,  (and  I  believe  none  are,)  it  appears  to  me,  on  mature 
reflection  and  examination  of  the  precedents  here  in  similar  cases,  that  if 
any  public  purpose  is  contemplated  by  the  use  of  the  papers,  it  is  better 
that  the  copies  should  be  furnished  only  upon  a  public  requisition.  Allow 
me  to  add,  sir,  that  if  you  or  any  other  gentleman  wish  to  prefer  any  new 
charges  whatever  against  the  receiver  at  Fort  Wayne,  or  to  have  any  fur- 
ther examination  made  into  those  heretofore  explained  by  him,  both  the 
President  and  this  Department  are  ready,  at  any  moment,  to  cause  a  full 
inquiry  to  be  made  into  them,  and  take  thereon  such  further  steps  as  the 
public  interest  may  appear  to  require, 

I  am,  very  respecttuUy,  your  obedient  servant, 

LEVI  WOODBURY, 
Secretary  of  the  Treasury, 
Hon.  J.  McCarty, 

House  of  Representatives. 


Receiver's  Office, 

Fort  Wayne,  June  20,  1836. 
Sir  :  I  have  just  returned  from  making  a  deposite.  I  was  much  de- 
layed in  getting  off,  in  consequence  of  the  great  press  of  business  in  the 
office,  not  being  able  to  procure  the  necessary  assistance.  Diu-ing  the 
month  of  May  I  had  to  stay  in  the  office.  I  had  nuich  difficulty  in  pro- 
curing a  team  to  transi)ort  the  silver,  which  I  at  last  succeeded  in  getting. 
It  liad  to  go  round  through  Ohio,  by  the  way  of  Dayton,  and  was  on  the 
road  between  two  and  three  weeks,  I  do  assure  you  that  it  has  been  im- 
possible to  go  throngh  on  the  route,  as  allowed  by  the  Comptroller,  with, 
wagons  or  on  horseback,  for  a  considerable  part  of  the  time  since  the  of- 
fico opened  on  the  7th  of  March  last.  The  Wabash,  Mississinewa,  and 
Salamonee  rivers,  and  some  smaller  streams,  have  been  so  high  as  to 


Rep.  No.   313.  229 

swim  my  horse.  Tliis  I  had  to  do  when  I  toeni  on  the  1st  of  June  inst. 
I  got  the  paper-money  wet,  biU  not  much  mjured.  It  would  be  more 
convenient  to  deposilc  in  Dayton,  Cincimiati,  or  Detroit,  than  at  Ricli- 
mond  or  Indiannpohs.  I'liero  is  no  direct  road  to  either  of  the  last-named 
places. 

I  am  now  getting  the  new  bond  made,  and  shall  leave  in  two  or  three 
days  to  sec  the  district  judge  for  its  approval. 

I  regret  having  been  so  situated  as  to  get  the  reprimand  from  the  Sec- 
retary of  the  Treasury  that  he  has  given  me.  I  will  in  a  few  days  be 
able  to  get  anotlier  clerk,  and  will  in  future  attend  strictly  to  depositing  as 
well  as  other  duties. 

I  am,  very  respectfully,  sir,  your  obedient  servant, 

JOHN  SPENCER,  Receiver. 

Hon.  Lkvi  Woodbury, 

Secretary  of  the  Treasury . 


15. — Correspondence  with  J.  H.  Owen,  receiver  at  St.  Stephen's,  Ala- 

bama. 

CIRCULAR. 

Treasury  Department,  February  28,  1835. 

Sir  :  It  has  been  intimated  to  the  Department  that  a  practice  prevails 
^i  some  of  the  land  oflices  of  permitthig  entries  and  issuing  certificates 
of  purchase,  without  the  payment  of  the  purchase-money  at  the  time  of 
the  entry.  Such  a  practice  being  unauthorized  and  highly  re])rehensible, 
1  have  deemed  it  proper  to  make  known  to  you  that,  if  it  has  been  tol- 
erated by  you,  it  must  immediately  cease;  and  any  repetition  of  it  hereaf- 
ter, coming  to  the  knowledge  of  the  Department,  will  receive  prompt  and 
exemplary  notice. 

I  cannot  omit  the  occasion  to  impress  upon  you  the  necessity  of  a  strict 
attention  to,  and  punctual  compliance  with,  the  duties  required  of  you  in 
regard  to  the  prompt  deposite  of  the  public  moneys,  and  transmission  of 
your  accotmts  imd  returns;  and  to  say  to  you  that  the  performance  of 
those  duties  must  be  regarded  as  paramount  to  all  other  in  your  official 
^station.  I  am,  &c. 

LEVI  WOODBURY, 

Secretary  of  the  Treasury. 

To  Receivers  of  Public  ^\ow:y  at  Cahaba,  Huntsvilte,  Munlgornery, 
St.  Stephen's,  Augusta,  Chocchiima,  New  Orleans,  Ouacfiita,  Dcmop- 
olis,  Murdisville,  Sparta,  Tuscaloosa,  Columbus,  fVashi?igton,  Ope- 
lou^as,  and  St.  Helena. 


Treasury  Department,  Jipril  12,  1836. 
Sir  :  Finding  that  no  attention  has  been  paid  to  my  letter  of  the  4th 
February  last,  reminding  you  that  your  returns  for  the  months  of  No- 
vember and  December  had  not  been  received,  and  apprizing  you  of  the 


230  Rep.  No.  313. 

course  which  your  coutinued  neglect  of  this  duty  would  compel  me  to 
adopt,  it  only  remains  to  int'orm  you  that  if  your  returns  for  November, 
December,  January,  February,  and  March,  are  not  received  by  return  of 
mail.  I  shall  report  your  neglect  to  the  Executive  for  his  inmiediatc  action. 

I  am,  &c. 

LEVI  WOODBURY, 

Secretari/  of  the  Treasury. 
J.  H.  Owen,  Esq. 

Receiver  of  Public  Money,  St.  Stephen'' s,  Ala. 


Land  Office,  St.  Stephen's,  Ala., 

May  29,  1836. 

Sir:  I  have  to  acknowledge  the  receipt  of  your  letter  of  the  13th  ulti- 
mo, which  did  not  come  into  my  hands  as  early  as  due.  I  am  surprised 
that  you  have  not  received  my  answer  to  your  communication  of  Febru- 
ary, in  which  I  stated  the  reasons  why  my  returns  were  delayed,  as  v/ell 
as  those  of  the  register.  All  my  accounts  were  made  out  at  that  period, 
but  I  suspended  their  transmission  at  the  request  of  the  register,  on  his 
discovery  that,  from  the  maps  having  been  neglected,  in  many  instances, 
to  be  properly  marked  by  his  predecessors,  he  had  permitted  numerous 
entries  of  lands  which  had  been  previously  sold. 

As  the  individuals  were  known  to  us,  we  thought  it  better  to  correct  such 
erroneous  entries  at  once, than  to  make  returnsof  the  lands  so  sold, and  there- 
by subject  such  purchasers  to  delay  in  the  receipt  of  their  money,  and  the 
Department  to  unnecessary  labor.  It  required  longer  time  than  we  had 
any  reason  to  suppose  to  gain  the  attention  of  these  individuals.  And 
apart  from  this  fact,  independent  of  the  ordinary  business  of  a  land  office, 
in  consequence  of  the  appreciated  value  of  the  lands  granted  by  the  Span- 
ish and  other  foreign  Governments,  and  of  which  the  records  are  kept 
here,  we  are  daily  subjected  to  great  labor,  for  which  no  note  is  taken, 
and  for  which  the  law  allows  no  perquisite.  Preparatory  for  the  courts, 
the  attention  of  the  ollicers  of  this  office  is  constantly  called  for  by  liti- 
gants in  the  investigation  of  these  old  claims,  in  granting  orders  of  survey, 
in  issuing  patent  certificates,  and  in  tlie  various  incidents  of  this  depart- 
ment of  our  duty,  which  necessarily  demands  time  for  patient  and  delib- 
erate investigation.  Having  been  honored,  too,  sir,  with  the  command 
of  a  regiment  of  the  military  force  of  this  State,  I  have  been  twice  called 
on  during  this  season  for  active  and  arduous  exertion  in  organizing  and 
furnishing  a  portion  of  the  men  required  to  march  against  the  savage 
foe  on  our  border.  Having  accepted  of  this  command  when  no  require- 
ment was  made  on  me  for  exertion,  I  did  not  deem  myself  at  liberty  to 
withdraw  from  it  when  its  duties  suddenly  became  of  an  important  and 
responsible  character. 

I  have  received  yoin-  letter  and  prepared  my  accounts,  such  as  you  see 
them,  in  the  interval  of  a  day  iVom  the  imbodying  and  marching  of  a  de- 
tachment from  this  regiment  to  their  rendezvous  in  the  Creek  nation. 
Nor  did  I  believe  that  a  little  delay  would  be  of  serious  import,  as  a  ref- 
erence to  the  bank  returns  (which  I  am  assured  are  transmitted  to  your 
Department,)  would  show  the.  amounts  and  periods  of  my  deposites. 
Whatever  my  own  losses  or  privations  may  be  in  the  service  of  the  Gov- 


Rep.  No.  313.  231 

eriinieiit,  I  am  Ibrtunate  in  having  the  disposition  to  pay  up,  without  any- 
other  thou!2:lit  than  that  of  the  propriety  of  such  a  course  of  conduct,  ail 
tiiat  may  be  justly  due  from  me.  The  causes  of  tliese  delays,  however, 
having  been  apparently  removed,  I  beg  to  assure  you  that  every  endeav- 
or will  be  used  by  both  officers  to  obviate  every  complaint  for  the  future. 
I  transmit  herewith  two  certificates  of  deposite,  the  originals  of  which  I 
transmitted  to  you  early  in  April.  If  at  hand  on  the  receipt  of  this,  be 
pleased  to  forward  the  present  enclosure  to  the  Commissioner  of  the  Gen- 
eral Land  OlTice.  I  transmit  herewith,  also,  a  certificate  of  deposite  of 
g30,000,  dated  2d  May,  1S36. 

I  am,  very  respectfully,  your  obedient  servant 

J.  H.  OWEN. 
Hon.  Levi  Woodbury, 

Secretary  of  the  Treasiwy. 


Treasury  Department,  September  7,  1836. 
Sir  :  Again  it  becomes  necessary  to  notice  your  neglect  to  make  your 
monthly  returns  for  April,  May,  and  July  last,  and  to  request  your  im- 
mediate attention  to  tiie  subject. 

I  am,  &c. 

LEVI  WOODBURY, 
RECEIVER  OF  Public  Money,  Secretary  of  the  Treasury. 

St.  Stepheii's,  Alabama. 


Treasury  Department,  December  19,  1836. 
Sir  :  Again  it  be,comes  my  unpleasant  duty  to  complain  of  the  neglect 
to  forward  your  monthly  returns  to  this  office,  and  your  quarterly  accounts 
to  the  Coimriissioner  of  the  General  Land  Office,  up  to  the  period  of  your 
resignation;  and  to  inform  you  that,  if  the  same  are  not  forthwith  trans- 
mitted, it  will  become  my  unpleasant  duty  to  cause  the  accounts  to  be 
stated,  and  to  direct  suits  to  be  instituted  on  your  official  bonds  for  the 
amount  which  appears  to  be  due. 

I  am,  &c. 

LEVI  WOOI^BURY, 
J.   H.  Owen,  Esq.,  Secretary  of  the  Treasury. 

Late  Receiver  of  Public  Money,  St.  Stephen^s,  %^labama. 


[Balance  due  from  Mr.  Owens,  as  late  receiver,  thirty  thousand  six  hun- 
dred and  eleven  dollars  and  ninety-seven  cents,  ($30,611   97.)] 


13. — CorresfMnd-ence  with  J.  W.  Stepheri-tori,  receiver  at  Galena. 

Tre.vsury  Department,  November  30,  1835. 
Sir:   Your  monthly  duplicate  returns  for  the  months  of  August,  Sep- 
tember, and  October,  have  not  been  received.     The  frequent  occasions  on 
which  it  becomes  necessary  to  notice  the  neglect  of  receivers  in  this  re- 
spect, suggests  a  resort  to  some  more  eftectual   remedy  than  mere  com- 


23-2  Kep.  No.  313. 

plaint.  Hence,  as  a  means  of  enforcing  a  strict  attention  to  this  duty,  I 
siiall  report  any  future  omission  in  this  respect  ibr  the  action  of  tlie  Ex- 
ecutive, unless  satisfactory  reasons  are  assigned  for  the  neglect.  The  re- 
turns inanear  are  expected  to  be  transmitted  forthwith. 

I  am,  &c. 

LEM  WOODBURY, 

Secrelari/  of  (he  Treamiry. 
Receivers  of  Public  Money 

at  GaloKt,  Illinois,  and  Tallahassee,  Florida. 


TuEAsuiiY  Dehaktjnient, 

February  4,  IS 36. 
Sir:  Your  returns  for  the  month  of  December  liave  not  been  received. 
I  regret  that  tliere  should  be  any  occasion  to  notice  the  neglect  or  acci- 
deirt,  (as  the  case  may  be,)  in  this  important  duty;  and  avail  myself  of 
the  occasion  to  iuform  you  that,  unless  your  future  returns  are  received  at 
the  Department  within  the  montii  next  succeeding  thyt  for  which  tiie  re- 
turn is  rendered,  it  will  place  me  under  the  disagreeable  necessity  of  re- 
porting the  fact  to  the  Executive,  in  order  to  comply  wiih  the  general  rule 
in  this  class  of  cases. 

I  am,  &.C. 

LEVI  WOODBURY, 

Sexnlary  of  the  Treasury. 
J  AS.  W.  Stephenson,  Esc].. 

Receiver  of  Publie  Money,  Galena. 


Land  Offuk,  Gai.ena, 

February  27,  1836. 

Sir  :  I  am  reminded  by  yours  of  the ultimo,  Avhich  1  had  the  honor 

to  receive  by  the  last  mail,  of  the  necessity  of  punctuality  in  llie  trauismis- 
sion  of  my  monthly  returns. 

Such  (since  the  commencement  of  cold  weather)  has  been  my  own  in- 
disposition, such  the  amount  of  sales,  and  such  the  diificulty  of  obtaining 
competent  assistance,  that  delincpiency  in  this  branch  of  my  duties  has 
been  rendered  unavoidable. 

Respectfully,  your  obedient  servant, 

JAMES  W^  STEPHENSON. 
Hon.  Levi  Woodrukv, 

Secrcfa-ry  of  the  Treasury. 


'I'reascrv  Dkpartment, 

Deceynher  5,  1836. 
Sir  :  It  has  been  my  unpleasant  duty  to  complain  of  your  negle  t  to 
transmit  your  nionlhly  reiurns  with  promptness  on  several  occasions  ;  and 
I  regret  that  it  again  becomes  necessary  to  notice  your  neglect  in  this  re- 
spect, as  also  of  your  omission  to  deposite  the  ])ublic  moneys  at  the  in- 
tervals prescribed  in  the  instructions  of  the  Department.     I  have  there- 


Rep.  No.  313.  233 

fore  to  require  that  your  returns  for  September,  October,  and  November 
last,  be  immediately  forwarded  to  this  olllce  ;  and  that  the  pubHc  moneys 
in  you4'  hands  be  ibrthwith  traiismitled  to  the  designated  bankoi'deposite, 
and  placed  to  the  credit  ol"  the  Treasurer. 
I  am,  &c. 

LEVI  WOODBURY, 

Secretary  of  the  Treasury. 
Receiver  of  Public  Money,  ^ 

Galena.  Illinois.  ' 


Land  Office,  Galena, 

January  5,  1837. 
Sir  :  I  have  just  returned  from  St.  Louis,  via  Vandalia;  at  which  lat- 
ter point  I  was  some  time  detained  in  attention  to  private  business.  Your 
letter  of  the  5th  ultimo  is  now  before  me,  and  I  can  only  regret  that  my 
delinquency  in  forwarding  returns  should  have  been  so  frequently  the 
subject  of  merited  reproof.  The  only  apology  I  can  offer  is,  that  the  re- 
turns were  not  in  a  situation  for  examination,  comparison,  &c.,  at  the  date 
of  my  departure  ;  and  further,  that  my  trip  was  unexpectedly  prolonged. 
In  future,  I  shall  hope  to  be  more  punctual. 
Respectfully,  your  obedient  servant, 

JAMES  W.  STEPHENSON. 
Hon.  Levi  Woodbury, 

Secretary  of  the  Treasury. 


Land  Office,  Galena, 

^pril  23,  1S37. 

Sir  :  On  the  29th  ultimo  I  left  this  place  to.attend  a  meeting  of  the  "Board 
of  Public  Works"  at  Vandalia.  Previous  to  my  departure  an  understand- 
ing was  had  between  the  officers  of  the  Galena  branch  of  the  State  Bank 
of  Illinois  and  myself,  by  which  it  was  sti])ulated  on  their  part,  should  my 
deposite  be  made  with  tiiem,  and  the  act  meet  the  displeasure  of  the  Sec- 
retary, they  would  immediately  place  the  identical  funds  to  the  credit  of 
the  United  States  in  the  Agency  of  the  Commercial  Bank  of  Cincinnati  at 
St.  Louis.  With  guaranty,  and -the  knowledge  that  the  State  had  recently 
become  a  stockholder  in  the  bank,  I  advised  the  gentlemen  in  my  office 
to  make  the  deposite,  and  forward  the  certificate  immediately.  By  mis- 
understanding, however,  the  certificate  was  not  applied  for  (although  the 
funds  were  deposited)  before  my  return.  The  board  of  directors  of  this 
branch  confidently  anticipate  the  deposites;  hence  their  anxiety  to  preserve 
the  fund  in  the  country  until  your  Department  shall  have  expressed  its 
views  on  this  subject.  As,  in  my  conception,  the  only  objection  to  this 
course  proceeded  from  the  delay  consequent  on  awaiting  the  acknowledg- 
ment of  the  receipt  of  the  certificate  herewith  enclosed,  I  must  presume 
to  ask  your  indulgence  should  my  compliance  with  their  request  not  re- 
ceive your  sanction. 

Very  respectfully,  your  obedient  servant, 

JAMES  W.  STEPHENSON. 
16 


234  Rep.  No.  313. 

Treasury  Department.  May  11,  1637. 

Sir  :  I  return  the  certificate  of  deposite  transmitted  with  your  letter  of 
the  23d  ultimo.  This  deposite  being  unauthorized,  it  becomes  necessary 
that  you  will  promptly  deposite  all  the  public  moneys  with  which  you  are 
chargeable  in  the  Agency  of  the  Commercial  Bank  of  St.  Louis  ;  and  that 
you  will  continue  to  do  so  until  otherwise  directed. 

No  return  having  been  received  from  you  since  that  for  the  month  of 
February,  I  have  not  the  means  of  knowing  the  amount  of  pubhc  moneys 
in  your  hands  at  the  time  of  the  deposite  in  question  ;  but,  by  your  return 
dated  the  28lh  February,  I  perceive  the  balance  then  on  hand  was 
jg60,284  46,  no  part  of  which  appears  to  have  been  since  deposited.  Un- 
der these  circumstances,  it  becomes  the  more  imperative  that  there  shpuld 
be  no  delay  in  the  transmission  of  all  the  moneys  in  your  hands  to  the 
designated  deposite  bank.  The  selection  of  the  Illinois  Bank  as  a  depos- 
itory of  the  public  moneys  is  a  subject  of  correspondence,  but  is  not  yet 
complete.  I  am,  &c. 

LEVI  WOODBURY, 

J.  W.  Stephenson,  Esq.,  Secretary  of  the   Treasury. 

Receiver  of  Public  Money,  Galena,  Illinois. 


Land  Office,  Galena,  May  31,  1837. 

Sir  :  I  last  evening  had  the  honor  to  receive  your  circular  of  the  12th 
and  letter  of  the  11th  instant,  returning  my  certificate  of  deposite  in  the 
Galena  branch  of  the  State  Bank  of  Illinois.  The  deposite  bank  at  St. 
Louis  having  stopped  specie  payment,  as  we  are  advised  by  the  latest  in- 
telligence, it  becomes  necessary,  in  compliance  with  your  circular  of  the 
12th,  that  the  public  moneys  on  hand  be  withheld  until  your  Department 
is  again  heard  from  on  the  subject  of  their  disposition.  Mine  are  on 
special  deposite  in  this  bank ;  and  I  have  now  to  request  that  I  may  be 
instructed  to  pay  over  the  amoiuit  to  my  successor  in  office,  who  will  he 
advised  to  receipt  for  the  same. 

Very  respectfully,  your  obedient  servant, 

JAMES  W.  STEPHENSON. 
Hon.  Levi  Wooduury, 

Secretary  of  the  Treasury,  Washington  city. 


Treasury  Department,  June  20,  1837. 

Sir  :  The  request  made  in  your  letter  of  the  31st  ult.,  to  be  permitted  to 
pay  over  to  your  successor  in  ofiice  the  public  moneys  in  your  hands,  is 
inadmissible.  It  is  desired,  however,  that  the  same  should  be  specially 
deposited  to  the  credit  of  the  Treasurer  of  the  United  States,  in  the  Agency 
•f  the  Commercial  Bank  at  St.  Louis,  in  case  that  agency  is  still  in  ex- 
istence, or,  in  the  event  that  it  is  not,  in  the  Bank  of  JNIissouri,  as  soon  as 
possible;  and  that  you  transmit  a  certificate  of  the  funds  of  which  such 
deposite  consists  to  this  office.  I  am,  &c. 

LEVI  WOODBURY, 

J.  W.  Stephenson,  Esq.,  Secretary  of  the   Treasury. 

Receiver  of  Public  Money,  Galena,  III. 


Rep.  No.  3i:^.  235 

Treasury  Department,  November  11,  1837. 
Sir:  Your  monthly  return  for  the  month  of 'August  last  has  not  been 
received;  and  you  are  requested  to  transmit  a  duplicate  thereof  without 
delay. 

I  am,  &c. 

LEVI  WOODBURY, 
Secretary  of  Ihe  Treasury. 
[The  above  circular  was  addressed  to  the  Receivers  at  Quincy,  Illinois; 
Fayeite,  Jackson,  and  Lexington,  Mississip}  i ;  Green  Day  and  Monroe, 
Michigan,  July  and  ^^liignst ;  Mineral  Point,  Michigan  ;  Crawfordsville, 
Indiana,  September  ;  Galena,  lilinois,  Si ptember  ;  Fayetteville,  Arkan- 
sas, September  ;  Tallahassee,  Florida,  September.^ 


[James  W.  Stephenson  stands  indebted,  as  late  receiver,  the  sum  of 
forty-three  thousand  two  hundred  and  niuety-fou4*  dollars  and  four  cents, 
(iig43,294  04.)J 


14. — Correspondence  with  S.  W.  Dickson,  receiver  at  Mount  Salus. 
Tkeasurv  Department,  Februan/  7,  1834. 
Sir  :  It  has  been  represented  to  this  Department  that  some  of  tlie  re- 
ceivers of  public  money  in  Mississippi  have  been  enga^red  in  trading  on 
the  bank  notes  they  receive  in  payment  of  pubhc  lands,  by  exchanging 
them  for  bank  notes  of  inferior  value.  I  hope  that  there  may  be  some 
mistake  in  this  business,  as  it  is  my  duty  to  state  to  you  that  such  conduct 
would  be  regarded  Iw  this  Department  as  a  gross  violation  of  officiid  duty, 
and  bo  treated  accordingly.  But,  as  such  a  statement  has  been  made 
from  the  most  respect-able  auth.ority,  I  nuist  ask  wiiether  you  have  en- 
gaged in  any  such  use  of  the  public  money  received  by  you,  and  request 
a  prompt  answer  to  this  inquiry. 

I  am,  &c., 

R.  B.  TANEY, 
Secretary  of  the  Treasury. 
To  the  Receivers  of  Public  Money 

ai  Jiugusta,  Mt.  Salus,  fVashington^  Chocchuma,  and  Columbus. 


Land  Office, 
Mount  Salus,  March  7,  1834. 
Sir:  I  hasten  to  acknowledge  the  receipt  of  your  communication  of  the 
7th  ultimo,  the  contents  of  which,  I  must  confess,  have  astonished  me. 
Should  the  representation  made  you,  of  trading  in  bank-bills,  or  any  spec- 
ulation in  money  whatever,  be  charged  against  me,  I  unhesitatintrly  pro- 
nounce the  same  a  gross  perversion  of  truth,  and  stand  prepared  to  dis- 
prove the  charge  as  far  as  any  negative  is  susceptible  of  proof;  and  take 
this  opportunity,  if  such  a  charge  rests  against  me,  from  any  source  wliat- 
ever,  of  suggesting  my  right  to  the  name  of  its  author,  that  I  may  have 
it  in  my  power  as  well  to  expose  the  calumniator  as  the  calumny.  If  I 
know  myself,  I  entered  on  the  duties  of  my  office  with  the  expectation  of 


236  Rep.  No.  313. 

I, 

the  lawful  profits  alone  of  the  office,  and  not  of  turnhig  the  office  into  a 
shaving-shop.  I  have,  in  many  instances,  exchanged  money  for  accom- 
modation sake  alone,  but  never  for  money  in  anywise  under  par,  which 
never  could  affect  the  interest  of  the  Government ;  and  having  no  reward 
for  the  same,  you  may  be  well  assured  I  could  have  no  inducement  to 
disparage  the  value  or  interest  of  the  Government  in  such  exchange  ;  and 
have  often  exchanged  Teimessee  and  Alabama  money  for  our  own  bank 
bills,  where  persons  were  wishing  to  travel  in  the  direction  of  those  States, 
and  the  aforementioned  bills  would  answer  their  purposes  better  there, 
though  not  so  current  here :  all  of  which  exchanges  (some  of  them  in 
United  States  paper,  and  some  in  State-banli  paper)  have  been  done  by 
me  without  one  cent  profit,  and,  as  I  before  said,  without  one  cent  loss  to 
the  Government ;  and  every  individual  who  has  been  accommodated,  or 
who  has  been  acquainted  with  any  such  exchanges,  will  corroborate  the 
above  statement.  If  such  exchange  is  a  fault,  I  have  erred  unintention- 
ally, and  without  the  least  benefit  to  myself:  if  it  is  not  a  fault,  (and  I 
cannot  conceive  it  one,)  then  I  am  wholly  blameless. 

I  am,  very  respectfully,  your  obedient  servant, 

S.  W.  DICKSON,  Receiver. 

Hon.  Secretary  of  the  Treasury. 


Land  Office, 
Mount  Salus,  (Mississippi,)  March  7,  1834. 
I  hereby  certify  that  the  above  statement  of  S.  W.  Dickson  is  true,  so 
far  as  the  facts  have  come  to  my  knowledge ;  and  I  further  certify  that  I 
have  known  him,  several  times,  to  reluse  to  take  a  reward  for  the  ex- 
change of  money. 

T.  DUMRALL,  Register. 


Treasury  Department,  March  25,  1S34. 
Sir  :  The  Department  having  received  no  monthly  returns  exhibiting 
the  transactions  of  the  land  office  of  which  you  are  receiver,  since  your 
appointment,  I  have  thought  it  proper  to  call  your  immediate  attention  to 
this  duty,  and  to  say  to  you  that^  as  a  means  of  enforcing  a  strict  compli- 
ance with  the  regulations  of  the  Department  in  this  respect,  I  shall  not 
hesitate  to  report  the  case  for  the  action  of  the  Executive,  should  the 
omission  be  continued. 

I  am,  &c. 

R.  B.  TANEY, 
Secretary  of  the  Treasury^ 
S.  W.  Dickson,  Esq., 

Receiver  of  Public  Money,  Mount  Salus,  Miss. 


Land  Office,  Mount  Salus,  ^pril  28,  1834. 
Siu :  I  hasten  to  answer  your  polite  communication  of  25th  ultimo  ;  and 
to  express  my  great  surprise  at  the  circumstance  of  your  not  having  received 
our  last  November  return,  forwarded  to  the  Commissioner  of  the  General 


Eep.  No.  313.  237 

Land  Office  31st  January  last, as  soon  as  it  could  be  prepared;  and  on  5th 
April,  the  December  return  was  sent  off;  and  immediately  thereafter,  I  for- 
warded the  January  returns:  and  on  the  31st  January,  I  sent  a  certificate  of 
deposite  to  the  Treasurer,  to  the  amount  of  three  hundred  and  fifty-nine 
thousand  eight  hundred  and  eight  dollars  and  five  cents,  of  which  I  inform- 
ed the  Commissioner  of  the  General  Land  Office.  I  sent  those  certificates  ia 
advance  of  my  accounts,  to  show  the  immense  press  of  business  here,^nd 
that  they  might  form  an  apology  for  the  protracted  delay  of  my  accounts; 
and  I  would  now  further  remark,  that,  for  several  of  the  first  weeks,  we 
had  such  a  concourse  attendant  on  the  otlice,  we  could  not  more  than  at- 
tend to  the  immediate  sales  of  land,  with  several  clerks  to  assist ;  and 
we  had  to  wait  until  January  before  we  could  write  up  the  books,  and 
make  out  tlie  returns  in  the  office,  even  of  the  first  month.  We  for- 
warded our  returns  in  tin  cases,  on  account  of  the  bad  roads  and  weather; 
and  I  am  unable  to  account  for  the  delay  of  them  on  the  road.  You  will 
please  find  enclosed  copies  of  the  letters  I  sent,  accompanying  the  re- 
turns and  certificates  before  referred  to ;  which  I  hope  will  satisfy  you 
of  my  due  attention  to  the  business  of  which  you  complain.  The  ex- 
treme ill  health  of  my  family  for  the  last  month,  and  even  now  but  little 
abated,  has  prevented  me  from  forwarding  my  quarterly  returns  earlier ; 
but,  I  assure  you,  the  current  business  of  the  office  is  well  attended  to, 
and  the  remaining  returns  are  now  maturing  for  transmission. 
Respectfully,  your  obedient  servant, 

S.  W.  DICKSON,  Receiver. 
Hon.  R.  B.  Taney, 

Secretary  of  the  Treasury. 


Land  Office,  Mount  Salus,  (Miss.,)  May  20,  1S34. 
Sir  :  I  have  the  honor  to  inform  you  I  have  completed  and  forwarded 
you  my  monthly  returns  for  the  quarter  ending  the  last  year,  as  well  as 
an  account  current  for  the  same  quarter ;  and  that  I  also  forward  to 
the  Commissioner  of  General  Land  Office  my  quarterly  return.  I  here- 
with also  enclose  to  you  two  certificates  of  deposite  to  the  credit  of  the 
Treasurer  of  the  United  States :  the  first,  bearing  date  27th  February, 
1834,  for  ninety-four  thousand  two  hundred  and  forty-nine  dollars  and 
eighty-three  cents ;  the  second,  dated  yth  May,  1834,  for  thirty-one 
thousand  seven  hundred  and  twenty-five  dollars  and  forty-one  cents; 
amounting,  in  all,  to  one  hundred  and  twenty-five  thousand  nine  hundred 
and  seventy  dollars  and  twenty-four  cents ;  which  sum,  added  to  the  cer- 
tificate which  I  heretofore  forwarded  the  Treasurer,  (say  three  hundred 
and  fifty-nine  thousand  eight  hundred  and  eight  dollars  and  five  cents,) 
amount,  in  all,  to  four  hundred  and  eighty-five  thousand  five  hundred 
and  thirty-three  dollars  and  twenty-nine  cents,  deposited  by  me  since  in 
office.  1  beg  leave  to  suggest  to  your  consideration,  as  an  apology  for 
my  seeming  delinquency  in  the  delay  of  my  returns,  that  innumerable  mis- 
takes arose  in  the  land  entries  of  the  first  quarter,  which  were  brought 
to  my  office  daily  for  correction.  In  attempting  to  rectify  such  errors,  I 
have  produced  a  discrepancy  in  iny  return  of  sales  and  my  qnarterly 
and  monthly  returns.  In  many  instances,  those  land  purchasers  would 
apply  for,  and  obtain,  a  return  of  their  money  for  lands  previously  sold 


238  Eep.  No.  313. 

and  not  marked  on  the  maps,  after  my  abstract  for  those  sales  would  be 
written  up ;  in  some  such  cases  the  correction  was  made  on  the  register, 
and,  ill  the  hustle  of  business,  neglected  on  the  ahstracts;  which,  I  think, 
must  have  produced  the  errors.  Thesj  errors  required  a  si^arch  into  each 
individual  entrj',  over  the  immense  sales  of  the  two  fnst  months,  in  every 
book  in  the  office,  making  a  tenfold  labor  to  the  ordinary  examinations  and 
preparations.  I  now  make  my  quarterly  returns  agree  with  my  register,, 
which  induces  the  belief  that  the  mistake  has  arisen  as  before  mentioned. 
I  would  now  suggest,  that  all  the  improper  entries,  producing  such  end- 
less trouble,  were  not  under  my  control,  and  could  not  originate  with  me, 
and  many  of  them  not  in  the  register's  power  to  avoid  the  maps  being, 
in  many  instances,  improperly  marked.  And  another  circumstance  well 
calculated  to  produce  embarrassment,  the  office  was,  in  all  the  last  quar- 
ter of  the  last  year,  not  only  full,  but  more  than  full,  with  eager  pur- 
chasers. The  spirit  of  speculation  pi-oduced  great  fears  with  all  the  set- 
tlers, lest  speculators  would  purchase  around  them,  and  crowd  their  set- 
tlements ;  and  such  was  the  niania,  that  many  applied  for,  and  some 
actually  purchased,  lands  they  liad  long  since  paid  for  ;  and  such  un- 
easiness prevailed  that  the  register  informed  me,  and  I  believe  the  fact 
to  be,  that  many  made  two,  and  some  three,  applications  for  the  same 
land.  Hundreds  waited  for  weeks  at  the  office,  which  produced  a  con- 
fusion unavoidable  by  the  officers.  I  am  thus  particular  to  show  the 
endless  trouhle  I  have  had  to  encounter,  in  correcting  mistakes  over 
whicii  I  had  no'contiol ;  and  I  was  informed  that  the  practice  had  been, 
in  the  office,  to  correct  mistakes  before  the  entries  were  sent  up.  I  was 
not  aware,  until  recently,  that  my  register  of  receipts  each  month  should 
be  accompanied  by  a  monthly  return  to  your  Department,  not  having 
seen  instructions.  I  am  now  maturing,  and  will  in  a  few  days  complete, 
my  monthly  returns  for  your  Department,  and  forward  them,  of  the  first 
quarter  of  this  year.  I  do  expect,  as  soon  as  I  can  get  the  business  up^ 
to  be  able  to  keep  my  returns  up  with  the  business,  1  have  had  an  ex- 
tremely sick  family  for  the  last  eight  weeks;  but  have  used  every  ex- 
ertion my  situation,  as  such,  would  affiird  in  the  discharge  of  my  official 
duties.  I  liave  charged  the  sales  with  the  amount  sent  heretofore  in  the 
register  of  receipts :  and  charged  in  the  succeeding  month  the  error  to 
balance  the  account;  of  which  I  will  inform  the  Commissioner  of  the 
General  Land  Office. 

I  am,  sir,  very  respectfully,  your  obedient  "Servant, 

S.  W.  DICKSON,  7?eceiycr. 
Hon.  R.  B.  Taney, 

Secretary  of  the  Treasury. 


Treasury  Department,  May  19,  1834. 
Sir  :  Lest  the  letter  of  which  the  enclosed  is  a  duplicate  mayhave  mis- 
carried. I  have  thought  it  proper  to  transmit  a  copy,  and  again  to  call  your 
attention  to  its  requirements.  I  am,  &c. 

R.  B.  TANEY, 
Secretary  of  the  Treasury. 
Receivers  of  Public  Money, 

t^lu^usta,  Mount  Salus,  Columbus,  Chocchuma. 


Rep.  No.  313.  239 

Treasury  Department,  May  21,  1S34. 

Sir  :  I  regret  to  perceive,  from  your  letter  of  the  28th  iiUimo^  that  the 
regulations  of  the  Department  in  regard  to  the  transmission  of  monthly- 
returns  and  certificates  of  deposite,  have  either  been  overlooked  or  not 
understood.  Monthly  returns,  as  the  enclosed  instructions  will  inform  you,, 
are  to  be  made  in  duplicate ;  one  to  be  forwarded  to  the  Secretary  of  the 
Treasury,  and  the  other  to  tlie  General  Land  Office. 

Certificates  of  deposite  are  to  be  addressed  to  this  office.  These,  and 
the  prompt  and  punctual  deposite  of  the  public  money,  are  to  be  regarded 
as  paramount  duties,  the  strict  performance  of  which  will  be  insisted  on. 

I  am,  &c. 

R.  B.  TANEY, 
Secretary  of  the  Treasury, 
S.  W.  Dickson,  Esq., 

Receiver  of  Public  Money,  Mount  Salus,  Miss. 


Treasury  Department,  November  \,  1S34. 
Sir  :  Obsei-ving  that  the  sum  of  money  deposited  by  you  on  the  30th  of 
September  last  is  short,  by  a  large  amount,  of  the  sum  in  your  hands  at 
that  date,  it  is  proper  that  I  should  call  your  attention  to  that  clause  of 
the  circular  of  the  1st  of  May,  1831,  which  requires  that  eacli  deposite 
shall  include  all  the  moneys  in  your  possession,  and  inform  you  that  the 
Department  will  hold  you  to  a  strict  compliance  with  tiie  regulations  irt 
this  respect. 

I  am,  &c. 

LEVI  WOODBURY, 
Secretary  of  the  Treasury. 
S.  W.  Dickson,  Esq., 

Receiver  of  Public  Money,  Mount  Sains,  Miss. 


Treasury  Department,  January  30,  1835. 
Sir  :  Again  it  becomes  my  duty  to  notice  your  neglect  to  render  your 
returns  for  the  months  of  October,  November,  and  December  last.  I  feel 
the  more  surprised  at  the  omission,  since,  by  letters  from  the  Department, 
dated  25th  of  March  and  21st  of  May  last,  you  were  given  to  understand 
the  course  which  your  neglect  would  oblige  the  Department  to  adopt.  It 
only  remains  to  say,  that  if  your  returns  are  not  promptly  and  punctually 
rendered,  and  tlie  public  moneys  deposited  as  the  instructions  of  the  De- 
partment require,  I  shall  be  under  the  painful  necessity  to  recommend  to 
the  President  that  you  be  removed  from  office. 

I  am,  &c. 

LEVI  WOODBURY, 
Secretary  of  the  Treasury. 
S.  W.  Dickson,  Esq., 

Receiver  of  Public  Money,  Mount  Salus. 


240  Bep.  m.  313. 

Treasury  Department,  February  4,  1836. 
Sir  :  Your  returns  for  the  months  of  November  and  December  have 
not  been  received.  I  regret  that  there  should  be  any  occasion  to  notice 
the  neglect  or  accident  (as  the  case  may  be)  in  this  important  duty; 
and  avail  myself  of  the  occasion  to  inform  you  that,  unless  your  fu- 
ture returns  are  received  at  the  Department  within  the  month  next  suc- 
ceeding that  for  which  the  return  is  rendered,  it  will  place  me  under  the 
disagreeable  necessity  of  reporting  the  fact  to  the  Executive,  in  order  to 
comply  with  the  general  rule  in  this  class  of  cases. 

I  am,  &c.  LEVI  WOODBURY, 

Secretary  of  the  Treasury. 
To  Receiver  at  Mount  Salus. 


Land  Office,  Mount  Salus,  (Mi.,) 

February  16,  1836. 
Sir  :  I  herewith  send  you  my  monthly  account  current  for  November 
'  last ;  the  vouchers  are  forwarded  to  the  Commissioner  of  the  General  Land 
Office.  I  very  much  regret  this  great  delay  in  my  returns,  but  it  has  been 
beyond  my  control  to  do  otherwise.  I  have  labored  under  severe  indis- 
position for  several  weeks,  and  a  part  of  the  time  I  have  been  confined  to 
my  bed.  I  was  first  attacked  with  erysipelas  of  the  ankle,  and  during 
the  public  sales  was  compelled  to  expose  myself  so  much  as  to  endanger 
the  loss  of  my  limb,  if  not  my  life;  since  which  time  my  health  has  occa- 
sionally alternated,  but  I  have  never  attended  to  business  two  days  at  a 
time  without  relapsing. 

Another  serious  inconvenience  to  the  discharge  of  my  duties :  my  old 
clerk,  in  the  midst  of  the  press,  was  compelled  to  leave  me ;  and  I  can  assure 
you  it  was  as  much  as  I  could  effect  to  keep  up  the  current  business, 
and  properly  attend  to  the  moneyed  concerns  of  the  office.  My  returns 
will  be  brought  up  as  soon  as  my  health  will  allow.  The  vicissitudes  of 
my  health  have  been  so  severe,  I  shall,  by  this  mail,  send  in  my  resigna- 
tion to  take  place  at  the  end  of  this  quarter. 

I  would  beg  leave  to  mention  that,  though  my  vouchers  of  deposite  in 
Natchez  bank  are  late  in  their  date,  yet  the  money  was  deposited  in  the 
branch  bank  at  Jackson  in  due  time,  and  my  indisposition  prevented  me 
from  attending  to  the  forwarding  the  certificates  to  Natciiez ;  in  fact,  my 
bodily  infirmity  has  prevented  me  from  regular  attention  to  the  duties  of 
my  oftice. 

Most  respectfully,  your  obedient  servant, 

S.  W.  DICKSON,  Receiver. 
Hon.  Levi  Woodbury, 

Secretary  of  the  Treasury. 


Land  Office,  Mount  Salus,  (Mi,,) 

March  15,  1836. 
Sir:  I  herewith  enclose  you  my  monthly  account  current  for  the  month 
of  December  last,  a  duplicate  of  which,  with  the  vouchers,  is  sent  to  the 
Commissioner  of  the  General  Land  Office. 
1  beg  leave  to  refer  you  to  my  quarterly  account  current,  sent  to  the 


Rep.  No.  313.  241 

General  Land  Ollicc,  showing  the  true  balance  on  hand  at  the  end  of  the 
third  quarter,  to  show  the  error  of  iSGOO  excess,  which  is  charged  to  be 
on  hand  in  the  October  monthly  account ;  the  error  has  also  run  through 
the  monthly  account  current  of  November  last,  but  the  quarterly  account 
current  of  each  quarter  corrects  the  mistake.  I  have  also  explained  this 
error  to  the  Commissioner  of  the  Land  Office. 

You  will  please  make  allowance  for  my  very  bad  health  Ibr  some 
months  past,  as  a  reason  for  my  delay  in  my  accounts.  I  have  barely 
been  able  to  keep  up'  the  current  business  of  the  office,  and  leave  my  ac- 
counts behind  their  usual  time  of  settlement.  I  can  assure  you  the  de- 
posites  are  all  regularly  made,  and  the  fiscal  concerns  of  the  office  whole- 
somely conducted.  You  must  bear  with  my  delay  in  the  accounts.  If  I 
had  anticipated  such  continued  ill  health,  I  would  have  resigned  before 
this  time.  1  hope,  however,  to  bring  up  my  accounts,  as  my  health,  with- 
in a  few  days,  has  greatly  improved ;  and  I  shall  spare  no  pains,  as  my 
heahh  will  permit,  to  settle  all  my  accounts  as  soon  as  possible  after  my 
resignation  takes  place. 

Respectfully,  your  obedient  servant, 

S.  W.  DICKSON,  Receiver. 

Hon.  Levi  Woodbury, 

Secretary  of  the  Treasury. 


Treasury  Department,  September  7,  1836. 

Sir:  I  embrace  this  occasion  to  call  your  attention  to  the  duty  required 
by  your  instructions,  of  making  monthly  duplicate  returns  of  the  transac- 
tions of  your  office — one  to  be  transmitted  to  the  Commissioner  of  the 
General  Land  Office,  and  the  other  to  the  Secretary  of  the  Treasury. 

I  am,  &G. 

LEVI  WOODBURY, 

Secretary  of  the  Treasury. 
Receiver  of  Public  Money, 

Mount  Salus,  Mississippi. 


Treasury  Department,  May  25,  1S37. 
Sir:  I  regret  to  be  under  the  necessity  of  complaining  of  your  neglect 
to  transmit  your  return  for  the  month  of  March  last,  and  of  reminding  you 
that  greater  strictness  must  be  observed  in  the  performance  of  this  duty. 

I  am,  &c. 

LEVI  WOODBURY, 

Secretary  of  the  IVeasury. 
Receivers  op  Public  Money, 

Ka.s/caskia,  Illinois,  March  and  April;  , 

Columbus,  Mississippi ; 

Mount  Salus,  Mississippi,  February  and  March. 


[S.  W.  Dickson,  late  receiver  at  Mount  Salus,  is  indebted  to  the 
United  States  Si  1,231  90,  and  to  the  Choctaw  school  fund  S89S  53  ;  ma- 
king in  all  twelve  thousand  one  hundred  and  thirty  dollars  and  forty-three 
cents,  (Sl2,130  43.)] 


242  Rep.  No.  313. 

15. — Correspondence  with  J.  L.  Daniel,  receiver  at  Opelousas. 

CIRCULAR. 

Treasury  Department 

February  28,  1835. 
Sir  :  It  has  been  intimated  to  the  Department  that  a  practice  prevails 
at  some  of  the  land  offices  of  permitting  entries  and  issuing  certificates 
of  purchase,  without  the  payment  of  tiie  purchase-money  at  the  time  of 
the  entry.  Such  a  practice  being  unauthorized  and  highly  reprehensible, 
I  have  deemed  it  proper  to  make  known  to  you,  that,  if  it  has  been  tol- 
erated by  you,  it  must  immediately  cease  ;  and  any  repetition  of  it  here- 
after, coming  to  the  knowledge  of  the  Department,  will  receive  prompt 
and  exemplary  notice. 

I  cannot  omit  the  occasion  to  impress  upon  you  the  necessity  of  a  strict 
attention  to,  and  punctual  compliance  with,  the  duties  required  of  you  in 
regard  to  the  prompt  deposite  of  the  public  moneys,  and  transmission  of 
your  accounts  and  returns;  and  to  say  to  j^ou  that  the  performance  of 
those  duties  must  be  regarded  as  paramount  to  all  other  in  yoiir  o  fficial 
station. 

I  am,  &c. 

LEVI  WOODBURY, 

Secretary  of  the  Treasury. 
To  Receivers  of  Public  Money  at  Cahabn,  Hnntsville,  Montgomery^ 
St.  St('.pheii,\^,^^ng-usfa,  Chocc/un?ia,  New  Orteans,  Ouachita,  Dc?nop- 
olis.  Maritisvilte,  Sparta,  Tuscaloosa,  Columbus,  Washington,  Ope- 
lousas, and  St.  Helena. 


Treasury  Department, 

January  29,  1836. 

Sir  :  Finding  that  no  monthly  returns  of  the  transactions  of  your  of- 
fice have  been  received  since  your  appointment  to  office,  I  must  claim 
your  immediate  attention  to  tliis  duty.  I  enclose  a  blank,  showing  the 
form  in  which  they  are  to  be  rendered,  and  request  that  you  will  trans- 
mit one  for  each  of  the  months  in  arrear,  and  also  for  each  future  month, 
to  this  office  ;  and,  at  the  same  time,  a  duplicate  to  the  Commissioner  of 
the  General  Land  Office. 

Punctuality  in  the  discharge  of  this  duty,  and  in  the  transmission  of  the 
public  moneys  to  the  bank  of  deposite,  will  be  insisted  on  ;  and  I  would 
therefore  commend  you  to  a  strict  regard  to  the  instructions  of  the  Depart- 
ment in  these  respects.  The  abstract  for  the  month  of  December,  ad- 
dressed to  this  office,  is  received  ;  but,  as  it  is  not  in  the  form  required,  it 
has  been  referred  to  the  Land  Oifice. 

I  am,  &c. 


Receiver  of  Public  Money, 

Opelousas,  Louisiana. 


LEVI  WOODBURY, 
Secretary  of  the  Treasury. 


Rep.  No.  313.  243 

Receiver's  Office  at  Opelousas,  La. 

September  5,  1S36. 

Sir  :  Enclosed  you  have  the  affidavit  of  Andre  Martin,  Esq.,  who  was 
present  on  the  2d  instant  when  1  offered  to  deposite,  in  the  office  of  dis- 
count and  deposite  of  the  Union  Bank  of  Louisiana  at  VcrniiUonville, 
the  sum  of  §17,200,  all  in  bills  of  specie-paying  banks  in  New  Orleans, 
except  $25  hi  gold  and  silver:  and  a  great  quantity  of  said  bills  were  the 
bills  of  the  Union  Bank  itself.  Tiie  cashier  of  the  said  office  of  discount 
and  deposite  of  the  Union  Bank  of  Louisiana  gave  no  other  reason  why 
he  would  not  accept  the  deposite  offered  by  me,  but  that  he  was  aware 
that  Congress,  at  the  last  session,  had  passed  a  law  making  it  the  duty  of 
receivers  of  public  moneys  to  receive  only  gold  and  silver;  and  moreover, 
that  the  Government  would  only  receive  gold  andsilver  from  the  deposite 
bank;  and  that  he  would  receive  nothing  else  in  deposite  on  account  of 
the  Government  of  the  United  States  but  gold  and  silver.  I  asked  him 
(the  cashier)  if  he  had  been  so  instructed  by  the  mother  bank,  and  he  said 
no.  I  have  brought  the  money,  to  wit,  ^17,200  all  back  to  Opelousas,  and 
have  deposited  the  same  in  the  office  of  discount  and  deposite  of  the  Me- 
chanics and  Traders'  Bank  of  New  Orleans  at  Opelousas,  where  it  will  re- 
main until  you  instruct  me  what  I  am  to  do  with  it.  I  have  always  discov- 
ered in  the  cashier  of  the  branch  of  the  Union  Bank  at  Vermilioiiville  a 
disposition  not  to  receive  the  deposites  from  this  office,  and  several  times  he 
has  told  me  that  he  would  not  receive  the  bills  of  any  of  the  deposite  banks 
in  tiie  State  of  Mississippi,  which  I  always  thought  it  my  duty  to  receive. 

Very  respectfully,  your  obedient  servant, 

JOHN  L.  DANIEL,  Receiver. 
Hon.  Levi  Woodbury, 

Secretary  of  the   Ih'casury. 

State  of  Louisiana, 
Parish  of  Lafayette. 

Vermilionville,  September  2,  1836. 

Personally  appeared  before  me,  the  undersigned,  parish  judge,  within 
and  for  said  parish,  Andre  Martin,  Esq.,  of  said  parish,  who  declared,  on 
oath  first  had  and  taken,  that  he  was  present  on  this  day,  the  second  day 
of  September  aforesaid,  at  the  office  of  discount  and  deposite  of  the  Union 
Bank  of  Louisiana,  established  in  Vermilionville,  in  the  parish  of  La- 
fayette aforesaid,  when  John  L.  Daniel,  Esq.,  receiver  of  public  moneys 
at  Opelousas,  in  this  State,  offered  to  deposite  in  said  branch  of  the  Union 
Bank  of  Louisiana,  established  at  Vermilionville  aforesaid,  the  sum  of 
seventeen  thousand  two  hundred  dollars,  public  moneys  belonging  to  the 
United  States,  all  in  bank  bills  payable  hi  this  State,  except  twenty-five 
dollars  in  gold  and  silver,  and  which  sum  of  seventeen  thousand  two 
hundred  dollars  the  cashier  (Casimer  Derbigny)  of  said  branch  of  the 
Union  Bank  of  Louisiana  at  Vermilionville  refused  to  receive  on  de- 
posite for  the  Government  of  the  United  States. 

ANDRE  MARTIN. 

Sworn  to  and  subscribed  before  me,  the  undersigned,  parish  judge  in 
and  for  the  parish  of  Lafayette  aforesaid,  on  the  day  and  year  first  above 
written. 

THOM.  B.  BRESHEAR,  Parish  Judge. 


244  JRep.  No.  313. 

Treasury  Department,  October  3,  1836. 
Sir  :  I  enclose  a  copy  of  a  letter  from  M.  Gordon,  Esq.,  in  reference  to 
your  complaint  against  Mr.  Derbigny,  and  have  to  request  further  expla- 
nations in  this  matter. 

I  am,  &c. 

LEVI  WOODBURY, 
Secretary  of  the   Treasury. 
Receiver  of  Public  Money, 

Opelousas,  Louisiana. 


Receiver's  Office, 
Opelousas,  (Louisiana,)  November  6,  1536. 

Sir  :  I  have  the  honor  to  acknowledge  the  receipt  of  your  letter  of  the 
3d  of  last  month,  enclosing  a  copy  of  a  letter  from  Martin  Gordon,  jr., 
cashier  of  the  Union  Bank  of  Louisiana.  I  can  only  state,  in  answer, 
that  when  I  arrived  at  the  branch  of  the  Union  Bank  at  Vermilionville, 
to  deposite  the  sum  of  :^I 7,200,  I  recited  to  Mr.  Derbigny  that  part  of 
your  circular  which  referred  to  the  manner  the  deposites  should  be  made 
after  the  15th  of  August  last,  and  further  remarked  to  Mr.  Derbigny  that 
the  certificates  could  be  made  out  as  usual,  only  staling  below  how  much 
of  the  amount  was  in  gold  and  silver,  and  how  much  of  the  amount  was 
in  current  bank  notes.  Mr.  Derbigny  replied  that  he  cared  nothing  about 
the  form  of  the  certificate,  as  he  would  not  receive  any  thing  on  deposite 
from  the  United  States  but  gold  and  silver;  he  further  stated  thus,  that,  if 
I  was  a  mind  to  leave  the  money  in  deposite  on  my  own  account,  he 
would  take  a  list  of  the  bills,  and  I  could  leave  it.  All  the  above  can  be 
proved  by  Mr.  Martin,  and,  perhaps,  by  Mr.  Voorhees.  Since  the  time  I 
offered  to  deposite  as  aforesaid,  the  directory  of  the  bank  at  Vermilion- 
ville, as  well  as  some  of  the  directors  of  the  mother  bank,  have  been  so 
well  convinced  of  the  misconduct  of  Mr.  Derbigny,  in  regard  to  the  afore- 
said deposite,  and  in  regard  to  others  of  his  duties,  that  they  have  told 
him  it  would  be  better  for  liim  to  resign,  as  he  would  certainly  be  turned 
out  of  the  office  he  then  held  if  he  did  not  resign  ;  and  he,  knowing  that 
he  could  not  much  longer  hold  the  same,  resigned  the  oliice  ;  which  is 
now  filled  by  a  very  wortliy  gentleman.  J  could  forward  you  the  certifi- 
cate of  Mr.  Martin,  confirming  what  I  have  above  stated,  and  I  could 
have  a  part  of  the  same  statements  confirmed  by  Mr.  Voorhees;  and  will 
do  so  if  you  require  it. 

Very  respectfully,  your  obedient  servant, 

JOHN  L.  DANIEL,  Receiver. 

Hon.  Levi  Woodbury, 

Secretary  of  the  Treasury,  fVashington,  D.  C. 


[John  L.  Daniel  is  indebted  to  the  Government  ^7,280  63.] 


Rep.  No.  313.  245 

16. — Correspondence  with  S.  W.  Beall,  receiver  at  Green  Bay. 

Treasury  Department, 

October  8,  1835. 
Sir:  Lest  you  may  not  tiave  received  copies  of  the  enclosed  circulars, 
showing  the  requisitions  to  be  observed  in  relation  to  the  receipt  and  de- 
posite  of  the  public  moneys,  they  are  herewith  transmitted. 

Until  otherwise  directed,  your  deposites  will  be  made  alternately  in  the 
Bank  of  Michigan,  and  in  the  Farmers  and  Mechanics'  Bank  at  Detroit. 

Commending  to  your  attcjition  a  strict  regard  to  the  duties  enjoined,  in 
respect  to  the  periodical  deposite  of  the  public  moneys,  and  to  the  trans- 
mission of  your  quarterly  accounts  and  monthly  returns, 

1  am,  &c. 

LEVI  WOODBURY, 

Secretary  of  the  Ti^easury, 
S.  VV.  Beall,  Esq., 

Receiver  of  Public  Money,  Green  Bay,  M.  T. 


Green  B4.Y,  November  15,  1835. 
Sir:  I  have  the  honor  to  acknowledge  the  receipt  of  your  letter  of 
October  8th,  together  with  two  circulars,  viz:  May  1st,  1831,  and  January 
15th,  1S34.  I  have  up  to  this  date  deposited  in  the  Farmers  and  Mechan- 
ics' Bank  at  Detroit,  but,  as  instructed,  I  shall  hereafter  deposite  alternately 
in  that  bank,  and  in  the  Bank  of  Michigan. 

I  have  the  honor  to  be,  with  great  respect,  your  obedient  servant, 

S.  W.  BEALL. 
Hon.  Levi  Woodbury, 

Secretary  of  the  Treasury. 


Treasury  Department, 

Jipril2Q,  1836. 

Sir  :  After  having  informed  you,  in  my  letter  of  the  4th  of  February 
last,  that  your  continued  neglect  to  transmit  your  monthly  returns,  within 
the  month  next  succeeding  that  for  which  they  are  rendered,  would  sub- 
ject me  to  the  painful  necessity  of  reporting  the  omission  to  the  President, 
it  is  with  regret  that  I  am  again  compelled  to  take  notice  of  a  similar 
neglect.  No  returns  for  the  months  of  January,  February,  and  March  last, 
have  been  received  from  you.  Under  these  circumstances,  I  must  require 
that  they  be  rendered  forthwith,  and  inform  you  that,  if  they  are  not  re- 
ceived by  return  of  the  mail,  I  shall  report  your  neglect  to  the  Executive, 
with  a  recommendation  that  you  be  dismissed  from  office. 

I  am,  &c. 

LEVI  WOODBURY, 

Secretary  of  the  Treasury. 
Receiver  op  Public  Money, 

Green  Bay,  Michigan  Territory. 


246  Rep.  No.  313. 

Green  Bay,  May  17,  18X6. 

Sir:  I  have  the  honor  to  acknowledge  the  receipt  of  your  letter  of 
April  26th,  which  arrived  in  the  boat  whicli  brought  me  from  Detroit. 

I  am  confident  that  my  letter  of  March  2d,  in  reply  to  yours  of  Febru- 
ary 4th,  had  not  been  received  on  the  26th  at  the  Department.  And  in 
the  fear  that  that,  as  well  as  my  returns  for  January,  and  February,  and 
March,  have  been  lost,  I  shall  prepare  and  send  duplicates  by  the  next  mail. 

I. beg  leave  to  state,  that  during  the  past  winter  it  was  utterly  out  of  my 
power  to  deposite  the  public  money  periodically,  and  at  the  same  time  to 
transmit  regularly  my  returns  to  the  Department,  signed  by  myself.  During 
the  summer  season,  no  ditRculty  or  omission  will  occur,  and  it  is  probable 
that  the  improvements  and  settlement  of  the  country  will  have  so  far  ad- 
vanced by  the  next  winter,  that  no  interruption  will  happen  in  the  regu- 
lar discharge  of  my  duties.  I  have  made  three  trips  to  Detroit  during  the 
past  winter,  the  difficulties  of  which  you  of  course  are  unaware.  And  I 
have  written  to  the  honorable  Lucius  Lyon,  of  the  Senate,  to  call  at  the 
Department,  and  make  an  explanation,  which  1  am  sure  Avill  be  satisfac- 
tory. It  gives  me  the  greatest  pain  and  uneasiness  to  find  that,  in  your 
opinion,  I  have  neglected  to  perform  any  part  of  my  duties;  and  I  am  im- 
pelled to  greater  exertion  to  remove  that  impression  by  punctuality  in  fu- 
ture. 

I  have  the  honor  to  be,  very  respectfully,  your  obedient  servant, 

S.  W.  BEALL: 

Hon.  Levi  Woodbury, 

Secretary  of  the  Treasury. 

P.  S.  My  returns  for  April  are  forwarded  by  this  mail. 


Treasury  Department, 

November  11,  1837. 
Sir:  Your  monthly  return  for  the  month  of  August  last  has  not  been 
received;  and  you  are  requested  to  transmit  a  duplicate  thereof  without 
delay. 

I  am,  &c. 

LEVI  WOODBURY, 

Secretary  of  the  Treasury. 

[The  above  circular  was  addressed  to  the  Receivers  at  Quincy,  Illinois; 
Fayeitc,  Jackson,  and  Lexington,  Mississippi;  Green  Bay  and  Monroe, 
M\c\\\2,:yn,  Jul}/  and  ^^uij^ust ;  Mineral  Point,  Michigan;  Crawforusville, 
Indiana,  September;  Galena,  Illinois,  September ;  Fayetteville,  Arkan- 
sas, September ;  Tallahassee,  Florida,  September.'] 


Rep.  No.  313.  247 


PART  V. 

FACTS  CONNECTED  WITH  THE  FOREGOING  DEFALCA- 
TIONS, AND  DEEMED  MATERIAL  TO  DEVELOP  THEIR 
TRUE  CHARACTER.  4 

It  may  well  be  supposed  by  the  House,  that,  in  the  course  of  an  inves- 
tigation involving  so  large  a  massof  testimony,  both  written  and  oral,  and 
from  the  despatch  incident  to  iheir  labors,  the  committee  have  di!>covered 
numerous  facts  of  deep  interest  to  the  House  and  country,  wl'iich  they  have 
been  unable  to  imbody  for  presentation  to  the  House  imder  either  of  the 
general  divisions  of  this  report  whicli  have  ])receded,  and  although  such 
facts  have  a  direct  and  kindred  relation  to  the  subject  of  defalcations  of 
public  officers  and  their  returns.  Some  of  them  will  now  be  briefly  ad- 
verted to. 

The  committee  have  found  that  both  the  late  and  present  collectors  at 
the  port  of  New  York  have  been  in  the  receipt  of  large  annual  incorr.es, 
amounting,  according  to  the  testimony,  from  ^5,000  to  •^15,000,  from  sto- 
rage of  dutiable  merchandise  in  the  public  store-houses  while  the  duties 
on  such  merchandise  are  being  computed. 

The  public  stores  at  New  York  thus  used,  are  divided  into  two  classes 
by  the  collector  :  one,  devoted  to  the  merchandise  under  ap})raisemei)t ; 
the  otlier,  to  merchandise  not  ordered  to  apjiraisement,  nor  permitted  to 
be  taken  by  the  importer,  and  being  still  in  the  keeping  of  the  law  ollicers, 
to  secure  duties.  The  former  are  called  appraisers'  public  stores,  and  are 
rented  at  the  public  expense.  No  storage  is  charged  on  merchandise  de- 
posited in  them,  but  their  whole  management  is  at  the  expense  of  the  Gov- 
ernment. The  other  stores  are  called  general  order  stores  ;  and  on  these, 
perquisites,  amounting  to  the  sums  before  named,  annually,  in  the  shape 
of  storage,  cartage,  and  labor,  are  charged  and  received  by  the  collector, 
who  takes  upon  himself  the  payment  of  the  incidental  rent,  retaining  to 
himself  the  entire  surplus.  Of  this  large  and  profitable  class  of  income, 
neither  the  late  nor  present  collector  has  made  any  return  whatever  to  the 
Treasury,  notwithstanding  the  requisitions  of  law  appear  imperatively  to 
require  it.  By  the  act  of  May  7,  1822,  section  9,  establishing  the  com- 
pensation of  custom-house  officers,  it  is  expressly  enacted  '<  that,  ivhen- 
ever  the  emohtme.nts  of  the  collector  of  the  customs  at  New  York  shall 
exceed  four  thousand  dollars  in  any  one  year,  after  deducting  the  neces- 
sary expenses  incident  to  his  office  in  the  same  year,  the  excess  shall,  in 
every  such  case,  be  paid  into  the  Treasury  for  the  use  of  the  United 
States.^'  By  section  11  of  the  same  act,  section  9  is  so  limited  as  not  to 
extend  to  fines,  penalties,  or  forfeitures,  or  tlie  distribution  thereof;  and 
by  section  18,  compensation  to  collectors  for  superintending  light-houses, 
in  addition  to  the  betbre-named  salary,  is  prtwided. 

In  the  opinion  of  the  committee,  the  emoluments  of  the  collector  at  New 
York,  arising  from  public  store-houses,  wi)ich  are  necessarily  at  all  times 
under  the  charge  of  sworn  officers  paid  out  of  the  public  Treasury,  are,  for 
no  sound  reason,  to  be  distinguished  from  any  other  emoluments  of  his 


248  Rep.  No.  313. 

office,  for  which  he  is  required  to  account  to  the  Treasury.  And  why  the 
collector  has  been  or  should  be  permitted,  by  virtue  of  his  oliice  as  col- 
lector, to  regard  as  an  unofficial  expense  the  rents  of  any  number  of  pub- 
lic stores,  and,  under  this  pretext,  to  make  them  the  sources  of  profitable 
speculation,  while  tlie  superintendence  of  the  whole  is  at  all  times  neces- 
sarily conducted  at  the  expense  of  Government,  and  by  subordinates  paid 
by  Government,  is  to  the  committee  wholly  incomprehensible,  and  believed 
to  be  not  only  an  evasion,  but  a  positive  violation  of  the  provisions  as  well 
as  obvious  intent  of  law. 

The  books  of  storage,  cartage,  and  incidental  expenses  of  the  public 
stores,  are  not  kept  so  as  to  exhibit  the  truth,  or  any  record  truth,  as  to  the 
extent  of  emoluments  thus  annually  arising  to  the  collector ;  and,  from 
the  testimony  of  the  principal  storekeeper,  both  in  relation  to  these  per- 
quisites under  the  former  and  present  collector,  as  also  from  the  testimony 
of  Mr.  Hoyt  himself,  the  committee  are  of  opinion  that  the  design  of  this 
looseness  in  this  portion  of  the  accounts  of  the  custom-house  is  to  escape 
the  possibility  of  full  and  minute  investigation  into  the  extent  of  moneys 
thus  withheld  from  the  public  Treasury,and  lest  its  importance  might  justly 
be  appreciated.  The  subjoined  testimony  of  Sidney  fVetmore,  public 
storekeeper,  examined  by  M?\  IVise,  will  elucidate  these  positions: 

Question  3.  Will  you  please  stale  the  amount  of  storage  charged  under 
the  late  and  present  collectors,  and  the  amount  of  rent  and  expenses  paid 
by  these  collectors  respectively,  for  each  quarter,  since  you  have  been  in 
office  ? 

^nsiver.  I  cannot  state  the  amount  paid  to  the  late  collector  correctly, 
as  he  often  drew  the  amount  from  my  liands  collected  daily,  and  part  of 
the  time  paid  rents  himself,  and  part  I  paid  by  his  order.  So  that  he 
can  only  tell  what  are  the  nett  proceeds  received  from  the  stores  during  his 
term  of  office.  Tiie  amount  oinett  proceeds  received  by  the  present  col- 
lector for  the  three  quarters  he  has  been  in  office,  I  think  is  about  ^2,500. 

Question  4.  Is  there  no  regular  book  or  account  kept  of  amounts  re- 
ceived for  storage  ? 

Jinswer.  I  keep  a  cash  book  of  the  gross  amount  of  storage,  cartage, 
and  labor  received  ;  but  which  does  not  show  the  amount  paid  out  for 
expenses,  nor  does  it  distinguish  what  part  is  received  for  goods  sent  on 
private  storage  at  request  of  the  merchant,  or  what  accrued  on  goods  sent 
on  general  order. 

Question  5.  Are  you  not  the  only  proper  officer  charged  with  keeping 
the  accounts  of  storage;  and  what  is  your  gross  estimate  of  amount  re- 
ceived by  Mr.  Swart wout  per  annum  for  storage? 

Ansioer.  I  am  the  only  officer  charged  with  the  keeping  of  the  storage 
account.  Mr.  Swartwout  received  some  of  the  stores;  of  course  I  can- 
not say  what  should  be  deducted  from  the  gross  amounts  for  rent  of  them; 
but  from  all  the  means  1  have  of  knowing  and  judging  of  this  business,  I 
should  say  the  nett  amount,  after  deducting  rent  and  expenses,  and  exclu- 
sive of  Mr.  Swartwout's  stores,  might  average,  yearly,  between  $5,000 
and  5^10,000.  The  business,  as  I  before  have  stated,  is  very  variable, 
owing  to  the  quantity  and  manner  in  which  goods  have  arrived.  Mr. 
Swart  won  Js  storehouses  were  worth  probably  {5.3,000  per  annum.  This 
would  make  the  entire  nett  perquisites  ^5,000  per  annum.  I  have  known, 
during  five  years,  the  nett  perquisites  on  storage  to  be  as  low  as  ^2,000 


Rep.  No.  313.  249 

per  annum,  and  to  vary  from  that  to  jS^10,000  per  annum,  in  one  instance. 
Hence,  I  put  the  gross  average  at  ^5,000  per  annum. 

Jesse  Iloyt,  collector,  exaviincd  by  Mr.  Hlse. 

Qucslion  3.  Do  you  account  to  Government  for  the  prolit  of  lhei;e 
stores,  otlier  than  appraisers'  stores?  If  not,  to  whose  use  are  the  per- 
quisites of  storage,  over  and  above  rent  and  expenses,  appropriated  ? 

^dnswer.  I  do  not  account  to  Government  for  any  excess  over  rent  tUid 
expenses.  This  profit,  I  understand,  has  been,  from  the  organization  ul 
the  present  tariff  system  down  to  the  present  time,  considered  as  beloi.C;- 
ing  to  the  collector.  It  is  a  private  storage  business  of  no  expense  to  the 
Government,  and  it  has  never  claimed  the  protit.  The  person  holding 
the  office  of  collector  leases  the  stores  and  pays  the  expenses,  and  chare  e-f 
the  storage  to  those  Vv^ho  use  the  stores;  and  the  rate  of  storage  is  thrd 
established  by  the  Chamber  of  Commerce,  as  this  witness  has  always  nu- 
derstood.  This  profit,  witness  believes,  has  always  been  for  the  use  of  ih; 
person  holding  the  office  of  collector. 

Quest  ion  4.  Does  tjie  collector  or  the  Government  pay  the  officios 
who  attend  to  storage  ? 

t'lnswer.  In  answer  to  this  question,  this  witness  says  that  the  law  re- 
quires that  all  goods  imported  are  to  be  landed  and  taken  care  of  by 
*' officers  of  the  customs,"  until  duties  are  paid  or  secured.  To  each  of 
the  public  stores  there  are  a  sullicient  number  of  inspectors  (sworn  officers) 
to  attend  to  the  receiving  and  delivering  the  goods  from  the  public  stores. 
There  are  two  or  three  of  such  officers  to  each  store,  depending  upon. the 
size ;  and  in  some  cases  there  may  be  four  of  such  inspectors  to  a  store. 
These  inspectors  are  called  off  for  other  duties,  when  the  case  re- 
tpiires,  and  are  also  responsible  for  other  duties  when  their  services  are 
(iemanded.  These  officers  receive  their  daily  pay,  as  inspectors,  from  the 
Government  money.  They  do  not,  as  witness  understands,  do  any  labor: 
but  merely  keep  an  account  of  goods  received  and  delivered."  The  labor- 
ers are  paid  by  the  person  holding  the  office  of  collector,  who  receives  the 
storage. 

Another  development  of  fact  made  by  the  committee  in  })ursuing  tlie 
inquiry  in  regard  to  the  disposition  made  of  public  moneys  b^'  Messrs. 
Swartwout  and  Price,  and  other  public  olficers,  is  deemed  hv  the  com- 
mittee deserving  of  being  presented  to  the  special  attention  of  the  House. 
How  far  it  may  have  entered  into  the  defalcations  of  the  late  collector 
and  district  attorney,  as  an  incipient  impulse  in  breaking  down  the  true 
estimate  by  the  public  officer  of  his  relations  to  community  and  to  Govern- 
ment, is  left  to  the  judgment  of  the  House  upon  the  facts  reported.  But  of 
its  direct  tendency  to  reduce  public  office  to  the  degraded  character  of 
merciiandise,  to  be  bought  and  sold  to  subordinates  by  a  regulated  annual 
stipend,  and  to  demoralize  and  prepare  the  mind  of  incumbents  of  oilice 
lor  acts  of  peculation  and  plunder  upon  the  public  revenues,  there  is  no 
doubt  remaining  in  the  judgment  of  tlie  committee.  The  system  of  a 
regular  taxation  of  public  olficers  connected  with  and  deriving  patronage 
from  the  custom-house  at  New  York,  l)y  a  tariff  proportioncjd  to  such 
patronage  in  each  case,  for  the  support  of  party  elections,  is  now  alluded 
to.  Instead,  however,  of  attem))ting  to  characterize  this  syt^tem  in  the 
terms  merited,  the  committee  will  attempt  oniv  to  present. a  summary  of 
17 


250  Rep.  No.  313. 

the  testimony  taken  upon  the  subject,  referring  for  more  minute  details 
*o  the  pages  of  the  committee's  journal. 

^^rejit  S.  Dc  Peyster  was  sworn  as  a  Witness. 

in  his  first  :inswer,  he  testified  thai  he  had  held  the  situation  of  weigher 
in  the  custom-house  about  live  years. 

In  reply  to  the  3d  question,  he  returned  tlie  following  answer: 

'•  'I'iie  weighers  were  called  on  tu  pay  fifteen  dollars  each  for  the  suj)- 
])ort  of  the  election  ;  and  Vviien  1  declined,  Mr.  V'anderpoel,  the  depuiy 
.surveyor,  observed,  that  I  ought  to  consider  whether  my  ;^1,500  per  annum 
was  not  worth  paying  fifteen  dollars  for.  Under  the  inipression  that  it 
was  the  price  of  my  situation,  I  paid  it.  The  above  occmred  dm'ing  the 
last  spring  election  for  charier  officers.  During  my  holding  otiice,  for 
about  five  years,  I  was  occasionally  called  on  ;  but  ahvays  declined,  until 
^^•jthin  the  last  two  years." 

,  In  liis  fourth  answer,  he  .snid  his  olTlce  of  weigher  was  held  under  the 
United  States,  and  paid  latterly  out  of  the  Treasury;  formerly,  a  com- 
mission was  allowed  on  the  amount  of  goods  weighed.  In  his  fifth  an- 
swer, he  said  he  knew  only  by  hearsay  as  to  whether  the  salaries  of  other 
.subordinate  otfieers  were  thus  assessed  for  the  use  of  parly  purposes  ;  and 
adds,  "but  I  saw  n)any  of  the  weighers  pay  the  tax  of  fifteen  dollars." 

The  money  thus  collected,  he  testified  '•  v/as  intended  to  be  used  to  sup- 
l)ort  the  election  of  persons  attached  to  the  present  admin.istralion."  The 
person  who  collected  the  tax  from  him  was  Mr.  Vanderpoel,  who  '■  at 
that  lime  held  the  office  of  deputy  surveyor.  He  did  not  recollect  tlic 
^imoiint  of  his  salary.  He  believed  he  now  holds  the  office  of  appraiser.'' 
He  (Mr.  Vanderpoel)  had  a  list  of  the  names  of  the  officers  from  whom 
he  collected  the  tax.  The  last  payment  of  ^15  made  by  the  witness,  re- 
ferred to  in  his  3d  answer,  was  made  "  since  the  last  collector  (Mr.  lloyt) 
camcinto  office."  The  wituoss  had  been  removed  l;y  Mr.  Hoyt,  but  had 
never  condescended  to  ask  the  reasons,  &.c. 

David  S.  'Lyon  was  sworn  as  a  witness.  In  answer  to  the  first  qiies- 
Tion,  he  said  :  '•  I  was  the  lirst  deputy  collector  of  the  port  of  New  York 
during  the  wliole  time  Samuel  Swarlwout  was  colh'Ctor." 

In  answer  to  the  21st  question, he  said:  ••  i  have  frerpiently  been  called 
on  to  contribiUe  to  political  objects  while  I  was  deputy  collector,  as  an 
officer  of  the  custom-house.  The  amount  Avas  from  twenty  to  one  hun- 
dred dollars.  Tlie  tax  was  pro  rata^  according  to  salary.  It  bore  a 
proporlioii  of  from  one  to  six  per  cent.  I  frequently  paid  a  part  of  thr 
amount.  When  it  was  too  high,  and  more  than  I  could  alibrd,  I  urgfd 
them  to  reduce  it.  In  one  instance,  when  I  Was  assessed  twenty  dollars, 
Mr.  Swartwont  told  the  collector  of  the  fax  that  ten  dollars  was  enough 
for  me  to  pay.  For  a  few  years  bade  I  have  not  paitl  any  thing  to  the 
general  committee,  because  I  could  not  afford  to  pay  the  amount  assessed, 
and  because  I  could  not  conscientiously  longer  sustain  the  party.  The 
collectors  of  the  Tammany  Hall  general  committee,  one  of  whom  was 
John  Becker,  called  on  me  several  times.  William  Tyack  once  or  twice 
called  on  me  to  collect  the  aujount  v/ith  which'  I  was  assessed ;  he  wa.s 
not  the  regular  collector,  but  was  one  of  the  general  comnnttee.  I  be- 
lieve that  nearly  all  the  officers  of  the  custom-house,  in  doors  and  out, 
and  the  clerks,  were  similarly  taxed,  and  generally  paid  what  they  wen; 
assessed.  It  was  assessed  by  the  general  committee  of  Tammany  Hall, 
and  for  tho  support  of  the  party  denominated  the  Tammany  Hall  party. 


Hep.  No.  313.  251 

If  the  individual  did  iioL  pay  the  amount  ho  was  taxed  with,  the  collector 
would  rcuiark,  You  will  bo  rcporlod  tothegenoral  coumiittec — and  every- 
body well  UMdcr.stood  that  pro.scriptiou  would  ibllow.  The  coU'.'Ctor  of 
the  j^eueral  cataiiiittcc  has  an  alphabolioal  bouk,  wiiich  contains  the  names 
of  ))ersons  taxed,  and  the  amount  tvich  individual  is  required  to  pay.'' 

'riiis  witnt^ss  had  ceased  to  b(;  deputy  collector,  iuid  was  so  notified  by 
the  present  c;)Uector  when  .Mr.  Swartwoul's  term  ol'oilice(;xpired.  T!ui8, 
by  these  two  ex-otlicers  of  tlr;  customs,  was  it  proved  that,  din-ing  the 
term  of  Ml-.  Swartwout,  and  of  the  present  collector,  (Mr.  TToyt,)  both,  had 
this  pro- nu^ a  tax  been  assessed  upon  the  salaries;  of  officers  of  the  Gov- 
•  ■runieiit. 

Ahrahu^n  B.  J'^tin.di'rpin'l,  a  person  now  incuml^ent  in  office,  wa^ 
sworn  as  a  witness.  He  said  :  •'  I  was  appointed  to  the  office  of  inspector 
of  the  customs  in  May,  1829,  at  551,095  per  year,  and  held  sueh  until  1836, 
whoi  I  was  a[)poinled  deputy  surveyor,  at  ^1,500  per  year,  and  March, 
183S,  appointed  appraiser  at  S-J,000  per  year." 

Mr.  \Vise  then  propounded  the  2d  question  to  the  witness,  and  certain 
occurrences  took  jiluee  in  the  commiltco,  whic'n  were  unanimously  ordered 
to  be  stated  on  tht;  journal,  thus: 

-Mr.  Wise  }>ropouHded  to  the  witness,  .Vbraham  B.  Vanderpoel,  the 
followinj^  (piestion,  to  wit :  Question  2d.  '  Do  you  know  whether  the  offi- 
cers of  the  custom-house  have  evor  been  called  on  to  contribute  sums  of 
money  to  party  and  political  objects?  What  officers  have  been  so  called 
upon;  by  whom;  f)r  what  aiuount;  with  or  without  regard  to  their 
salaries  of  oilice  ;  wlieii  \\\^  tliey  contribute  ;  if  they  refused,  was  any  in- 
timation q;iven  that  their  refusal  mis^ht  occasion  th(ar  removal ;  what 
amount  has  so  Ijeen  Ciuitrihuted  or  collected,  and  for  the  sujj.port  of  what 
party,  at  any  one  eb^crion?' 

"The  witness  took  the  interrogatory  without  ohjeciion  to  propounding, 
the  same,  and  proceeded  to  write  his  ;mswer  thereto  on  the  paper  attachf!<l 
to  the  <-|uestion,  ;uid  had  writti'U  tiie  following-,  lo  wit:  '  I  have  known 
officers  attached  to  the  custom-house  to  have  been  called  on  for — '  when 
Mr.  Owens,  member  ot'  the  committee,  interposed,  and  informed  the  wit- 
ness that  he  was  not  bound  to  answer  any  interrov^atory  relating  to  hi^: 
private  alfairs ;  and,  tlicreupon,  Mr.  Poster,  another  ineoibsr  of  the  com- 
mittee, objected  to  propounding  the  interroiratory.  The  witness  here 
commenced  to  tear  olf  what  he  had  written  before  objection  was  made  to 
the  interrogatory.  Mr.  Wise  prevented  him  from  doing  so  by  forbidding 
the  act.  Air.  Foster  insisted  that  the  witness  had  tlie  riglit  to  tear  ol^' 
what  he  had  written,  and  that  it  was  hot  his  answer  until  it  w;is  complete 
and  handed  in,  and  he  asked  the  witness  wlielher  it  was  his  answer,  and 
he  replied  '  it  Avas  not ;'  and  the  committee  having  decided  tliat  the  in- 
terrogatory should  be  propounded,  the  said  question  by  Mr.  Wise  waV, 
again  handed  to  the  witness,  and  he  returned  t!ie  following:  'I  decline 
to  .answer  the  2d  question.'  •  Tji;;  witness  was  then  permitted  to  retire." 

John  Becker  was  sworn  as  a  witness.  In  answer  to  the  3d  question 
he  said:  "I  have  beco  collector  for  the  democratic  repu!)licau  party  in  thiy 
city.  It  is  not  an  official  app  >intment,  and  I  have  made  no  colleciions  for 
this  year;  nor  have  I  been  discharged  from  said  appointment."  In  an- 
swer tt)  the  1th  queslioii,  whether  he  had  ever  collected  any  sum  or  siuns 
of  money  from  William  M.  Price,  whilst  he  wcis  district  attorney  of  the 


252  Eep.  No.  313. 

United  States,  for  the  democratic  republican  party  of  New  York,  he  said.: 
'•  All  the  collections  I  ever  made  for  the  democratic  republican  party  were 
strictly  confidential;  I  therefore  respectfully  decline  answering  the  ques- 
tion." In  answer  to  the  17th  question,  he  said  he  was  the  collector  of 
the  democratic  republican  party  for  five  or  six  years  previous  to  1838. 
By  the  IDtli  question,  he  was  asked  whether,  dnring  the  time  lie  was 
collector  of  the  democratic  republican  party  in  the  city  of  New  York,  and 
since,  he  had  known  William  M.  Price  to  pay  or  contribute  any  sum  or 
sums  of  money  to  political  and  party  objects,  he  answered :  ''  I  cannot 
answer  that  question  without  violating  confidence."  In  answer  to  the 
20th  question,  he  said  :  '*  He  had  never  known  William  M.  Price  to  con- 
tribute, at  any  one  time,  or  at  diiferent  times,  to  carry  an  election  for  tiie 
democratic  republican  party  in  the  city  of  New  York  §500,  nor  half  of 
that  sum."  He  was  then  asked  how  much  less  he  had  known  him  to 
contribute.  He  declined  to  answer.  He  was  asked  whose  confidence  he 
would  violate  by  answering  the  19th  question.  He  answered:  "The 
confidence  of  the  finance  committee  of  the  geneial  democratic  republican, 
committee."  In  answer  to  the  26th  question,  he  said  tliat  Mr.  Vander- 
poel  was  a  member  of  one  of  these  committees  in  1838;  and,  in  answer 
to  other  questions,  that  other  officers  of  the  custom-house  had  been  mem- 
bers of  these  committees  during  the  past  four  years;  that  Price's  contri- 
butions had  not  amounted,  to  his  knowledge,  to^500;  that  there  were 
other  collectors  besides  himself;  the  members  of  the  finance  committee 
were  all  collectors  ;  that  he  declined  answering  how  often  he  had  collected 
from  Mr.  Price ;  that  his  instructions  from  the  finance  committee  were, 
that  he  should  not  inform  any  person  from  whom  or  how  nuich  he  col- 
lected from  any  person;  and  that  these  instructions  were  the  reason  why 
he  declined  to  answer  several  questions  of  the  committee,  in  as  far  as  he 
thought  it  would  be  a  violation  of  confidence. 

•Thus,  though  it  was  very  apparent  from  the  testimony  of  this  witness 
that  Mr.  Price  iiad  contributed  something  to  party  and  political  objects^ 
yet  what  amount  he  liad  paid  to  tlie  seven  or  eight  collectors  of  his  party 
for  such  objects,  whilst  he  was  an  officer  of  the  Government  and  a  de- 
faulter, could  not  be  ascertained  by  reason  of  tlie  secrecy  enjoined  upon 
these  collectors  by  the  general  or  finance  committee  of  the  party. 

The  committee  further  report,  under  the  head  of  general  facts  material 
to  characterize  the  late  defalcations  at  New  York,  that  the  following  tes- 
timony shows,  1st.  The  whole  amount  of  upecie  collected  at  the  cnstom- 
huuse  of  New  York  dnring  the  entire  period  of  the  saspensioji  oj  specie 
payments,  7ca6  less  than  the  svni  of  $  I  r>0, 000,  and  (f  that  sum.  but 
;S70,000  was  carried  to  the  credit  of  the  Treasurer  (f  the  United  States; 
2d.  That,  during  the  suspension  of  specie  payments,  the  Treasury  De- 
partment had  to  send  from  W\ashington  city  to  the  collector  at  New  York 
drafts  for  specie  to  pay  debentures  and  expenses  of  his  office  ;  3d.  That 
Mr.  Swartwout,  during  the  suspension  of  specie  paynients,  notoriously 
received  a  large  portion  of  the  revenue  coUecled  at  N(i\v  York  in  hank 
notes  which  were  not  allowed  by  the  Department  to  be  carried  to  the 
credit  ol  the  Treasurer  of  the  United  States;  and  -Ith.  That  this  receipt  of 
bank  notes  not  carried  to  the  credit  of  the  Treasurer  of  the  United  States, 
must  be  regarded  as  an  important  cause  tending  to  aid  Mr.  Swartwout 
in  abstracting  the  public  money  ;  and  5th.  That  the  bonds  contained  in 
the  list  of  Phillips,  in  document  13,  the  receipts  of  which  Mr.  Swartwout 


Ken.  No.  313.  253 


never  debited  himself  with  as  paid  during  the  first  quarter  of  1837,  and 
which  constitute  the  chief  item  of  his  defalcation,  were  never  suspended 
either  by  the  order  of  the  Secretary  of  the  Treasury  or  by  the  act  of  Con- 
gress of  October,  1837,  and  were  actually  paid  before  the  suspension  of 
specie  payments  ;  and  thus  ihe  excuse  of  the  Department  for  not  detect- 
mg  the  defalcation  of  Mr.  Swartwout's  bond  account,  founded  upon  the 
■confusion  arising  from  the  suspension  of  the  payment  of  duty  bonds, 
utterly  fails. 

The  testimony  is  ae  follows: 

Joshua  Pkillips  was  sworn  as  a  witness. 

Examined  by  Mr.  JVisc, 

Question  1.  Were  the  bonds  included  in  the  list  kept  by  you  and  con- 
tained in  document  13,  herewith  handed,  and  chiefly  payable  in  the  1st 
and  2dquarters  of  1S37,  paid  to  Mr.  Swartwout? 

Answer.  All  the  bonds  included  in  the  list  kept  by  me,  and  contained 
in  document  No.  13,  were  paid  to  Mr.  Swartwout. 

Question  2,  Were  the  bonds  included  in  the  amount  of  difference 
between  the  sum  of  that  list  of  bonds,  §597,331  63,  a.nd  the  sum  of 
^646, 754  83,  (the  alleged  deficit  of  Mr.  Swartwout,)  paid  to  him,  and,  if 
not,  to  whom'' 

Answer.  The  money  for  all  bonds  collected  were,  in  each  and  every 
instance,  paid  over  to  Mr.  Swartwout,  and  the  above  ditference  was  paid 
to  him. 

Question  3.  Were  those  bonds  paid  at  maturity  ? 

A/isioer.  Inconsequence  of  the  business  of  the  custom-house  having 
got  be!iindhand,the  bonds  were  not  made  up  (by  ascertaining  the  amount 
of  each,  &c.)  in  time  to  be  sent  to  bank  for  collection,  and  they  were  col- 
lected at  the  custom-house;  and,  generally,  the  bonds  contained  in  list 
of  document  13  were  paid  after  maturity. 

Question  4.  How  long,  generally,  after  they  were  due,  and  in  what 
months  of  1S37,  were  they  paid  ? 

Ansv>er.  The  bonds  were  paid,  generaUy,  from  ten  to  twenty  days 
after  they  became  due,  and  in  the  months  of  January,  February,  March, 
April,  and  May,  1837,  All  were  paid  previous  to  the  suspension  of 
specie  payments. 

Question  5.  Was  the  payment  of  any  of  these  bonds  suspended  by  th€ 
order  of  the  Treasury  Department  in  May,  1837,  ujuil  Congress  was 
assembled  in  the  September  following? 

Answer.  None  of  the  bonds  contaitied  in  said  list  were  suspended  by 
any  order,  from  the  Treasury  Department. 

Question  6.  In  what  kind  of  money  did  Mr.  Swartwout  receive  the 
5imounts  of  bonds  and  customs  after  the  suspensi«n  of  specie  payments? 

Answer.  For  some  time  after  the  suspension  of  specie  payments  by  the 
banks,  Mr.  Swartwout  directed  the  cashier's  department  to  receive  the 
notes  of  the  hunks  in  this  city  in  payment  for  bonds  and  customs  •,  and 
that  course  was  pursued  until  the  issue  of  Treasury  drafts,  and,  occ;ision- 
Ally,  during  the  whole  time  tliat  Mr.  Swartwout  remained  in  office. 

Question  7.  What  amount  did  Mr.  Swartwout  receive  in  bank  notes? 


254  Hep.  No.  313. 

rin.siccr.  Previous  to  liiC  issue'  of  Treasury  driiAs,  the  wliolo  amount 
coliecteil  was  received  iu  bank  iJ0te5>.  The  jsarticular  amovuit  1  caunot 
state.  The  ainouut  of  specie  received  (hiring  the  suspension  was  about 
Sl50,0C0,  and  of  that  amount  370,000  was  transferred  l>y  Mr.  -Swartwout 
to  tlie  Treasurer  of  the  United  States. 

Question  S.  Was  not  the  whole  amount  of  bonds  included  in  your  list 
of  bonds  received  by  Mr.  Swartwout  ui  1K"7  paid  to  liini  in  bank  notes? 

.htsu'c?'.  The  whole  auiount  vv'as  paid  in  bank  notes. 

Qucslion  9.  Were  tliese  bank  notes,  after  the  suspension  of  specie  pay- 
ments in  May,  allowed  by  the  Department  to  be  paid  by  Mr.  Swartwout 
to  the  credit  of  the  Treasurer  of  the  United  States  ? 

t-insiver.  After  the  suspension  of  specie  paym(nits  I  am  not  aware  of 
iMVf  moiiey  being  transferred  to  the  credit  of  the  Treasurer  of  tjie  United 
States,  except  ^70,000  in  specie. 

Que.siion  10.  Please  state,  categorically,  whether  the  Department  au- 
thorized, or  iu  anyway,  directly  or  indirectly,  permitted  or  prohibited  the 
credit  of  bank  notes  during  the  suspension  of  specie  payrnciuts  by  Mr., 
Swartwout  to  the  Treasurer  of  the  United  States? 

Aiiswer.  I  do  not  know  that  the  Departtnent  authorized,  or  in  anyway 
permitted  or  prohibited,  directly  or  indirectly,  the  credit  of  bank  notes 
during  tlic  suspension  of  specie  payments  to  the. Treasurer  of  the  United 
States  further  than  (if  my  memory  is  correct)  Mr.  Swartwout  having  told 
me,  some  time  after  the  suspension,  that  he  had  received  a  letter  from 
W^ashington  directing  him  not  to  receive  any  money  on  account  of  the 
United  States,  e>;cept  of  that  description  authorized  by  law. 

Queslion  11.  Did  not  Mr.  Swartwout,  soon  after  the  suspension  of 
specie  puymenis,  i)ay  a  visit  to  Washington  to  obtain  from  the  Depart- 
ir;enr  an  arrr.ngcmenl  as  to  iho  kind  of  money  in  which  customs  should 
be  received  ? 

./Ltsiuer.  Mr.  Swartwout  did,  soon  after  the  suspension,  visit  Wash- 
ington, and  liis  object  was  to  make  an  arrangement  us  to  the  kind  of 
money  he  might  receive  for  customs. 

Question  12.  U}K>n  his  return  to  New  York,  did  he  not,  at  a  public 
rueeiing  of  merchants,  and  at  all  times  after  his  visit  to  Washington,  pub- 
licly and  privately,  announce  that  he  would  receive  bank  notes  in  pay- 
ment of  customs  ? 

,/lnswer.  Upon  his  return  to  New  York  Mr.  Swartwotit  did,  at  a  public 
meeting  of  merchants,  declare  that  he  would  receive  bank  notes  in  pay- 
ment of  customs  ;  and  upon  every  occasion  wlien  applied  to  by  persons 
as  to  the  description  of  money  he  would  receive,  his  answer  was,  that  he 
would  take  bank  iiotes,  and  that  he  had  told  ihem  at  Washington  that  he 
would  take  the  responsibility. 

Question  13.  Was  it  not  notorious  in  New  York  that.  Mr.  Swartwoufi 
was  receiving  bank  notes  in  payment  o{  customs  ? 

.Answer.  It  was. 

Question  14.  The  Treasury  Department,  knowing  the  amount  of  pro- 
t'^:sted  'J'r(;asury  drafts  received  at  the  custom-house  in  New  York,  and 
the  amount  ofspe(Mepaid  there  during  the  suspension  of  specie  payments, 
must  it  not  liave  knov/n  that  Mr.  Swartwout  7vas  receiving  bank  notes, 
and  must  it  not  have  had  the  means  of  knowing  the  amount  of  bank 
notes  .he  received? 


Rep.  No.  313.  255 

Answer.  I  do  not  think  that  the  Treasury  Department  was  aware  of 
the  total  amount  of  specie  received,  as  no  regular  returns  were  made  of 
it.  They  knew  the  amount  of  protested  Treasury  draffs  received.  I;i- 
quiry  was  niad(!  from  Washinirton  as  to  what,  amount  in  specie  could  be 
placed  hy  the  collector  to  the  credit  of  the  Treasury  of  the  United  States, 
and  in  three  instanc(>s  the  ainonnt  of  $70,000  was  so  placed  :  and  I  be- 
lieve it  may  iiave  been  known  at  Washington  that  he  was  in  the  habit  of 
receiving  bank  notes. 

Question  15.  Was  not  the  Hon.  Levi  Woodbury,  Secretary  of  the 
'IVeasury,  at  the  ('ustom-house  in  New  York  during  tlie  summer  of  183^, 
Ijefore  Mr.  Swartwout  sailed  for  England  ?     If  so,  during  what  month  } 

,'lnswer.  I  saw  a  person,  during  the  summer  of  1S3S,  (the  month  I  do 
not  know,)  at  the  custom-house,  and  I  v/as  told  it  was  the  Hon.  Ijevi 
Woodbury.  I  had  never  seen  him  before  that  lime.  I  do  not  know 
whether  it  was  before  or  after  Mr.  Swartwout  sailed  for  England. 

Question  21.  Does  the  statement,  contained  in  3^our  letter  of  Novem- 
ber 9th,  1S3S^  to  H.  D.  Gilpin,  Solicitor,  as  contained  in  Doc.  13,  shovvintr 
the  mode  of  collectmg  bonds  through  the  banks,  apply  to  the  bonds  con- 
tained in  your  list  of  bonds  taken  by  Mr.  Swartwout,  and  not  accounted 
for  by  him  to  the  United  States  ? 

Answer.  The  statement  contained  in  my  letter  of  November  9,  1S38. 
to  H.  D.  Gilpin,  Solicitor  of  the  Treasury,  showing  the  mode  of  colioc'i- 
ing  bonds  through  the  bank,  does  not  apply  to  the  bonds  contained  in  list 
taken  by  Mr.  Swartwout,  and  not  accounted  for  by  him  to  the  United 
States.  These  bonds  were  all  collected  tlu'ough  the  custom-house,  and 
were  never  placed  in  bank.  It  is  passible  that  a  few  of  them  might  have 
been  put  in  bank  for  collection  and  returned  to  the  custom-house,  and 
afterwards  paid  there  :  but  the  amount,  if  any,  was  very  small. 

Question  23.  Which  were  the  banks  the  notes  of  which  sencrally  JMr. 
Swartwout  received  during  the  suspension  in  1S37? 

Answer.  The  notes  of  all  the  batiks  in  the  city  of  New  York  were  re- 
ceived generally  by  Mr.  Swartwout  during  the  suspension  in  1837,  cixcept 
those  of  the  Dry  Dock  Bank. 

Question.  24.  Have  not  all  these  banks  since  resumed  specie  payments; 
and  if  their  notes,  received  by  Mr.  Swartwout  in  1837,  had,  after  it  was 
known  that  they  were  received  by  him,  been  ordered  by  the  Department 
to  be  paid  by  him  to  the  credit  of  the  Treasurer  of  the  United  States,  aufl 
been  so  paid  by  him.  would  the  United  Suites  have  lost  a  dollar  upon 
bonds  so  received  by  him  in  bank  notes  ? 

Answer.  All  the  l)anks  in  the  city  of  New  York  have  resumed  specie 
payments  ;  and  had  Mr.  Swartwout,  after  it  was  known  he  was  rcceivmg 
bank  notes,  been  ordered  by  the  Department  to  transfer  the  notes  so  re- 
ceived, the  United  States  woidd  Jiothavc  lost  a  cent  in  bank  notes  received 
by  him,  if  he  had  made  the  transfer  so  ordered. 

Mr.  ()s;den  e.vamined  hy  Mr.  Wise. 

Question  42.  Were  the  bonds  included  in  the  list  of  bonds  kept  by 
Phillips,  and  contained  in  Doc.  13,  paid  to  Mr.  Swartwout  ?. 

•'Inswer.  These  bonds  were  all  paid  to  Mr.  Swnrtwout. 

Question  43.  Were  the  bonds  which  were  due  and  payable  in  the  1st 
and  2d  quarters  of  1S37  paid  at  maturity  ? 


256  Rep.  No.  313. 

,insiver.  I  believe  they  were  all  paid  at  maturity,  Avith  some  excep- 
fi(M)s,  which  were  sent  to  Mr.  Price  for  prosecution. 

Question  44.  Was  their  payment  suspt  nded  or  affected  by  the  order 
of  the  Treasury  Department  in  May,  1S37  ? 

,Insicei'.  The  payment  of  these  bonds  was  not  affected  by  the  order  of 
the  Treasin-y  Department  in  May,  1S37. 

Quest iun  45.  What  kind  of  money  did  Mr.  Swartwout  receive  for  cus- 
toms after  the  suspension  of  specie  i)ayments  ? 

^inswer.  Mr.  Swartwout  received  in  payment  Treasury  notes,  bank 
notes,  checks  on  the  banks,  and  gold  and  silver  ;  the  principal  part  in 
bank  notes  and  checks,  and  Treasury  notes  when  they  were  below  par. 
The  amount  of  gold  and  silver  was  very  small,  it  never  exceeded  §7,000 
any  day,  and  seldom  amounted  to  that  sum  ;  generally  two  to  four  thou- 
sand dollars.  The  whole  amount  of  our  receipts  in  specie  during  the 
suspension  of  the  banks,  was  about  one  hundred  and  fifty  thousaiid  dol- 
lars.    More  than  two-thirds  of  our  receipts  were  in  bank  notes  and  checks. 

Question  46.  \Vere  the  an'iounts  received  in  bank  notes  by  Mr.  Swart- 
wout, during  the  suspension  of  specie  payments,  placed  to  the  credit  of 
tlic  Treasurer  of  tlie  United  States  ? 

^'Inswer.  The  amounts  of  bank  notes  received  by  Mr.  Swartwout  were 
not  passed  by  him  to  the  credit  of  the  Treasurer  of  the  United  States. 

Question  47.  Must  the  Department  not  have  known  then,  from  his 
quarterly  accounts  showing  the  whole  amount  received  by  him,  and  the 
amount  placed  to  the  credit  of  the  Treasurer  of  the  United  States,  that  he 
was  receiving  a  large  proportion  of  the  customs  in  bank  notes,  which 
were  not  allowed  fo  be  carried  to  the  credit  of  the  Treasurer  ? 

tlnsu.^er.  Certainly,  had  they  examined  his  quarterly  account,  they  could 
have  ascertained  the  amount  received  by  him,  as  well  as  they  could  have 
become  accptainted  with  the  amount  of  receipts  in  bank  notes  which  were 
not  carried  to  the  credit  of  tiie  Treasurer. 

Question  48.  Whilst  the  quarterly  accounts  of  Mr.  Swartwout  for  1837 
showed  that  large  balances  were  in  his  hands,  did  not  the  Treasury  De- 
partment repeatedly,  during  the  suspension  of  specie  payments,  send  to 
Mr.  SwartwoiU  drafts  for  specie  to  pay  debentures  and  expenses  of  his 
officers,  &c.  ? 

<Qnsioer.  During  the  above  period  large  balances  were  in  Mr.  Swart- 
wout's  hands,  and  the  Government  passed  heavy  drafts  upon  him  for 
Kpecie,  which  he  was  unable  to  pay  in  specie  ;  in  fact,  we  had  to  apply 
to  the  Treasury  Department  for  specie  to  pay  debentures  and  the  current 
expenses  of  our  office. 

In  addition  to  the  foregoing  testirriony  of  Messrs,  Phillips  and  Ogden, 
the  cashier  and  assistant  cashier  at  the  custom-house  at  New  York,  under 
Mr.  Swartwout,  the  committee  submit  the  following  correspondence 
between  Mr.  Woodbury  and  Mr.  Swartwout: 

May  10,  1837. 
Sir  :  Owing  to  the  heavy  run  which  was  made  throughout  Monday 
and  Tuesday  upon  the  banks  of  this  city,  they  all  came  to  the  determina- 
tion last  evening  of  suspending  specie  payments  for  the  present,  the  de- 
posite  banks  being  included  in  the  number.  As  soon  as  the  deposite  banks 
opened  this  morning,  I  called  upon  the  presidents  and  cashiers  to  confer 


Rep.  No.  313.  257 

with  them  in  relation  to  Jliis  measure,  and  liave  been  advised  by  the 
Manhattan  Company  and  Bank  of  America  to  continue  to  receive  the 
notes  of  the  city  banks  as  usual. 

On  looking  over  the  "circular  to  collectors  and  receivers  of  public 
money  and  to  the  deposite  banks,"  I  find  the  instructions  so  positive  that 
I  prefer  suspending  receipts  for  bonds,  in  this  office,  which  may  be  return- 
ed from  the  banks,  until  I  can  receive  your  further  instructions.  In  this 
decision  I  am  sustained  by  the  opinion  of  the  district  attorney.  Many 
persons  have  tendered  bank  notes  for  tlieir  bonds,  which  fell  due  some 
days  since,  but  I  have  declined  receiving  tliem  until  I  hear  from  you.  In 
order  that  I  may  receive  the  earliest  information  frojn  you,  I  shall  send 
this  letter  by  the  '' expt'ess  mail.^' 

I  am,  &c. 

S.  SWARTWOUT. 

Hon.  Levi  Woodbury. 

P.  S.  The  National  Bank  refuses  to  receive  the  notes  of  the  Mechanics' 
Bank  in  consequence  of  the  large  balance  due  them. 


To  collectors  of  the  customs. 

Treasury  Department,  May  12,  1837. 
If  the  bank  where  you  deposite  should  suspend  specie  payments,  you 
will  yourself  collect  and  keep  safely  in  your  own  hands  the  public  money 
for  all  duties  at  your  port,  until  further  directions  are  given  to  you  by  this 
Department  how  to  deposite,  transfer,  or  pay  it.  You  must,  of  course, 
continue  to  adhere  to  the  existing  laws  of  Congress,  and  the  former  in- 
structions of  the  Treasury,  in  respect  to  the  kind  of  money  receivable  for 
customs :  and  by  which  it  is  understood  to  be  your  duty  to  require  pay- 
ments to  be  made  in  specie,  or  the  notes  of  specie-paying  banks  that  are 
at  par. 

LEVI  WOODBURY, 

Secretary  of  the  Treasttry. 


Treasury  Department,  May  19,  1837. 

Sir:  This  Department  has,  with  much  surprise,  seen  several  represent- 
ations in  the  daily  press  concerning  certain  declarations  made  by  you  at 
a  recent  public  meeting  in  New  York  city,  as  to  the  course  you  intended 
to  purr.ue  in  future  in  collecting  the  public  revenue. 

The  importance  of  the  subject,  and  the  nature  of  these  representations, 
render  it  my  unpleasant  duty  to  call  your  innnediate  attention  to  them. 

Some  of  the  accounts  of  what  took  place  represent  you  as  saying,  in 
substance,  that,  as  the  orders  of  the  Treasury  could  not  be  complied  with, 
you,  oi\  your  own  responsibility,  would  dispense  with  them  ;  while  others 
state  that  yon  understood  a  discretion  had  been  left  to  you  by  the  Execu- 
tive on  this  subject ;  and  that,  in  the  exercise  of  such  discretion,  you  should 


258  Rep.  No.  313. 

not  coijform  to  the  instructions  of  .the  Department,  either  by  collecting  the 
money  yourself,  which  fell  due  for  duties,  or  by  collecting  it  in  such  kind 
of  money  as  the  laws  require.  Other  representatioDS  convey  the  idea  that, 
if  you  pursued  such  a  course,  the  Government  would  make  no  objection 
to  it. 

Under  a  behef  tliat  in  these  reports  as  to  your  remarks  and  determina- 
tion on  this  siibject,  some  unfortuiiaie  errors  must  have  occurred,  or  that 
you  nuist  have  imbibed  very  incorrect  opinions  concerning  the  views  en- 
tertained by  the  Department,  it  becomes  proper  on  the  present  occasion 
to  repeat,  in  explicit  terms,  the  real  character  and  extent  of  tiiose  views. 

1.  Tlie  order  as  to  the  mode  of  collecting  bonds  by  yourself,  rather  than 
through  the  banks,  and  in  specie  or  its  equivalent,  was,  in  the  last  respect, 
in  accordance  with  the  course  which  you  reported  to  this  Department  for 
its  approval  on  the  suspension  of  payment  by  the  banks.  The  order  was 
the  same  in  substance,  in  all  respects,  at  your  port,  as  that  adopted  -at  all 
otjier  ports  in  the  United  States,  where  no  banks  paid  specie  on  demand 
for  their  notes,  and  where,  in  that  event,  the  express  language  of  the  do- 
positc  act  of  June,  1836,  imperatively  required  tlicir  discontinuance  as 
public  depositories;  and  odier  laws  virtually  forbid  the  receipt  of  their 
notes  for  duties. 

2.  But,  in  the  wide-spread  calamity  which  had  recently  fallen  on  the 
commercial  world,  and,  through  it,  upon  those  banking  institutions,  in 
common  with  others  which  were  depositories  of  the  public  money,  it  was 
cvideiit  that  our  Unanccs  must  iK-eome  end)arrassed  through  the  previous 
embarrassments  of  others,  and  that  great  care  and  ellbrtsmust  be  exercised 
to  meet  faithfully  the  curnait  public  engagements.  At  the  same  time,  it 
Avas  desirable  that  every  indulgence  and  forbearance  should  be  exercised, 
and  were  intended  by  the  President  and  this  Department  to  be  liberally 
exercised  towards  the  public  debtors,  which  those  engagements  would 
permit. 

3.  Accordingly,  in  order  to  njitigale  the  evils  which  pressed  so  heavily 
on  the  rnercliants,  this  Department,  with  the  sanction  ot"  the  President,  at 
once  authorized  a  postponement  to  be  granted,  in  all  suitable  cases,  of  the 
payment  of  duty  bonds,  as  well  before  as  after  suit ;  and  subsequently,  as 
new  events  justified,  permitted  it  to  be  extended  till  after  the  commence- 
inent  of  the  noxt  session  of  Congress. 

The  Department  likev/ise  empowered  the  collectors  to  receive  for  duties 
the  drat'ts  of  the  Treasurer,  in  favor  of  the  public  creditors,  which  might  not 
be  paid  in  specie  to  the  holders  by  the  banks  on  which  they  were  drawn. 

Outstanding  debenture  bonds  are  also  receivable  in  the  same  way;  and, 
to  afford  the  opportunity  to  procure  still  further  aid  and  relief,  if  it  shall 
be  deemed  proper  by  Congress,  that  body  has  been  specially  convened  by 
the  President  at  the  earliest  convenient  day. 

After  all  these  mitigating  measures,  neither  the  President  nor  this  De- 
partment saw  any  further  indulgence  which  could  be  given  consistent 
with  the  acts  of  Congress,  and  which  it  was  within  our  powers  to  bestow, 
limited  and  regulated  as  those  powers  are  by  various  express  laws. 

It  was,  and  still  is,  hoped  that  the  merchants  would,  till  Congress  as- 
sembled, cheerfully  incur  the  diminished  sacrifices,  in  respect  to  the  pay- 
ment of  some  of  the  duties,' which  their  liabilities  and  business  might 
render  necessarv;  and  that  the  odicers  connected  with  the  customs  would 


Rep.  No.  313.  259 

fuel  a  pride,  as  well  as  /.oai,  in  encouraging  llicmto  upyioid  the  lawsfaiili- 
fully,  and  neither  counlenance  nor  })erniit  any  departures  from  thcni. 

The  Executive  possesses  no  authority  to  delegate  to  you,  nor  has  il  in- 
tended to  delegate,  any  discretion  to  disregard  those  laws  in  any  particular, 
or  to  act  contrary  to  the  instructions  of  the  Department  which  had  heeti 
issued  in  conforniitv  to  them  ;  nor  can  it  sanction  the  exercise  of  any  such 
discretion  on  the  })art  of  any  of  the  ollicers  of  the  customs. 

It  would  seem  better  that  the  duties,  wiiether  due  on  bonds  or  in  cash, 
when  the  goods  are  entered,  and  wliich  the  merchants  may  be  unable,  if 
not  postponed,  to  pay  in  any  of  the  legal  modes  before  pointed  out,  till  the 
early  day  on  which  Congress  convenes,  should  go  entirely  unpaid  from 
inability  to  meet  them  legally,  than  be  collected  or  discharged  in  a  man- 
ner that  is  not  sanctioned  either  by  the  acts  of  Congress  or  our  duty  to  the 
Govermnent. 

'I'he  Department  is  willing  to  make  liberal  allowances  for  acts  growing 
nut  of  the  sympathy  naturally  felt  for  tlie  cmbarras'sments  of  tlu-  commer- 
cial community,  and  the  strong  desire  to  contribute  to  their  relief;  but 
you  must  be  sensible  that  the  newspaper  accounts  which  have  already 
appeared,  are  calculated  to  convey  the  idea  that  the  President  and  this 
Department  are  disposed  to  overlook,  or  even  to  approve,  the  unauthor- 
ized course  which  it  is  said. you  propose  to  adopt  ;  audit  is  possible  that, 
from  your  full  knowledge  of  the  sincerity  and  extent  of  the  anxious  desire 
of  the  President  and  of  this  Department  to  alibrd  relief,  you  may  have 
entertained  the  impression  that  such  would  be  the  case. 

It  therefore  becomes  my  duty  instantly  to  inforiii  you  that  all  such  im- 
pressions are  erroneous,  and  it  is  hoped  that  many  of  the  considerations 
liefore  stated  will  have  occurred  to  you;  and  that,  under  their  intluence, 
you  will  continue  to  discharge  your  duties  in  the  manner  pointed  out  in 
the  acts  of  Congress  and  the  instructions  of  this  Department. 
I  am,  sir,  very  respectfully,  your  obedient  servant, 

LEVI  WOODBURY. 

Secret  my  of  the  Treasury. 

Samuel  Swartwotjt,  Esq.. 

Collector.  New  York. 


May  22,  1837. 
Sir  :  1  have  the  lionor  to  acknowledge  the  receipt  of  your  letter  of  the 
19th  instant,  and  beg  leave  to  state,  that  I  regret  that  you  should  have 
believed  the  various  reports  of  the  new.spapers,  in  regard  to  the  language 
said  to  have  l)een  made  use  of  by  me  on  the  17th  instant,  I  will  give 
you  the  precise  v.'ords  made  use  of  by  ine,  and  leave  you  to  judge  whether 
there  was  any  impropriety  in  them.  Several  gentlemen  called  u])on  me 
to  request  that  I  would  meet  the  merchants  at  their  exchange,  and  inform 
them  of  the  result  of  my  visit  to  Washitigton.  I  did  so  ;  and  when  tliere, 
stated,  that  inmiediately  on  the  receipt  of  your  communication  of  the  12th 
instant,  I  set  out  for  Washington  ;  that  when  I  arrived  there,  I  waited 
upon  the  Secretary  of  the  Treasury,  and  expressed  to  him  my  apprehen- 
sions that  the  order  could  not  be  carried  out,  and  begged  to  know 
whether  some  expedient  could  not  be  adopted  to  relieve  the  merchants 
from  specie  payments;  that  the  Secretary  showed  me  the  law,  read  it.  and 
observed  that  it  was  imperative,  and  could  not  be  disregarded  ;  that  upon 
this  1  went  to  see  the  President,  who  gave  me  the  same  assurances,  ex- 


260  Rep.  No.  313. 

pressing,  at  the  same  time,  his  deep  sympathy  for  the  merchants  who 
were  so  unfortunately  situated;  that  as  no  rehef  could  be  offered  through 
the  authority  of  Government,  1  had  offered  to  act  without  its  orders,  pro- 
vided 1  was  permitted  in  any  way  so  to  do,  and  that  I  would  throw  my- 
self upon  the  people  and  Congress  for  my  justification  ;  but  that  this  prop- 
osition was  promptly  discountenanced  by  you.  In  conclusion,  I  remark- 
ed, that  notwithstanding  the  Government  could  not  authorize  any  devia- 
tion from  the  law,  I  was  perfectly  willing  to  take  such  responsibility,  and 
that  I  believed  the  people  and  Congress  would  bear  me  out  in  it.  This 
same  declaration  was  made  in  your  and  the  President's  hearing,  without 
exciting  your  alarm  in  the  least  at  the  time. 

In  renewing  it  here,  I  did  not  mean  to  be  understood  as  having  acted 
on  it,  or  assumed  it ;  but  simply  expressed  my  belief,  in  case  it  should  be 
done,  and  I  was  willing  to  run  the  hazard,  that  I,  or  any  other  person  .so 
doing,  would  be  fully  sustained  by  Congress.  The  expression,  therefore, 
of  such  a  belief  was  hot  crinjina  I,  although  to  carry  it  out  might  have 
been  ;  but  this  I  did  not  do.  The  instructions  contained  in  your  letter  of 
the  12th  instant,  and  in  subsequent  orders,  have  been  strictly  carried 
into  effect.  Not  a  dollar  for  bonds,  or  cash  duties,  has  been  received 
at  this  ollice,  since  Mr.  Ogden  received  your  letter  of  the  14th  instant, 
in  any  thing  but  specie.  I  have  not  authorized  or  countenanced  a 
deviation  from  it.  Tiiere  has  not  then  been  any  violation  of  the  orders 
of  the  Department.  The  most  unpleasant  circumstance  connected  with 
this  affair,  is  the  impression  that  I  may  have  authorized  the  supposition 
that  5'-ou  or  the  President  had,  by  inuendo  or  intimation  of  any  kind,  in- 
duced me  to  assume  this  responsibihty.  This  is  impossible.  I  may  be 
imprudent,  over-zealous,  or  incautious  ;  but  I  beg  you  and  the  President 
to  believe  that  I  am  incapable  of  duplicity  or  falsehood.  I  could  not,  in 
the  most  remote  degree,  have  done  so.  I  never  dreamed  of  such  a  thing, 
and  never  could  have  entertained  the  idea,  or  in  the  slightest  degree  have 
mtimated  it  to  otliers.  I  will  detain  you  no  longer  than  to  request  that 
hereafter,  when  any  thing  is  published  in  the  newspapers  reflecting  upon 
this  office,  you  will  do  me  the  favor  to  believe  that  we  are  acting  for  the 
best,  and  have  no  intention  of  disregarding  the  directions  of  the  Govern- 
ment. 

S.  SWARTWOUT. 

Hon.  Levi  Woodbury, 

Secretary  of  the  Treasury. 


In  conclusion,  the  committee  cannot  forbear  remarking,  that  during 
their  whole  investigation  they  have  not  found  the  case  to  which  the  laws, 
as  they  already  exist,  do  not  apply,  or  in  whicli  they  are  defective.  The 
permanent  provisions  of  the  laws  constitute  every  necessary  check  upon 
collectors,  receivers,  and  disbursers  of  public  money;  and  the  checks 
wliich,  by  law,  have  been,  and  may  be,  created  in  the  discretion  of  the 
Executive,  have  only  to  be  attended  to,  and  applied  by  those  whose  duty 
It  is  to  superintend  the  execntion  of  the  laws,  to  ensure  faithfulness,  and 
detect  derelictions  or  defalcations  in  public  oliicers. 

Indeed,  in  all  the  new  recommendations  which  have  been  proposed  by 
the  President  or  the  Secretary  of  the  Treasury,  the  committee  have  found 
eithei' what  already  exists,  or  what  might  always  have  been  prescribed 
and  enforced  in  the  form  of  Treasury  regulations,  and  what,  if  enforced, 


Hep.  No.  313.  261 

would  have  prevented  the  late  defalcations;  and  these  new  recommend- 
ations can,  indeed,  be  regarded  in  no  other  light -than  as  so  many  proofs 
of  what  regulations,  in  respect  to  the  late  defaulting  collectors,  receivers, 
&c.,  have  been  hitherto  wholly  neglected  by  the  present  Executive  and 
heads  of  Departments. 

The  committee  hereto  append  the  Journal  of  their  Proceedhigs,  and 
submit  it  to  the  House  as  a  j)art  of  this  repojt. 


PART  VI. 

MR.  HOPKINS'S  SPECIAL  CONCURRENCE  IN  THE  REPORT 
OF  THE  COxMMITTEE,  APPENDED  THERETO  BY  VOTE  OF 
THE  COMMITTEE. 

I  have  not  had  the  requisite  time  for  scrutinizing  the  report  of  the  com- 
mittee with  that  care  and  attention  which  its  length  and  importance  de- 
serve, and  which  I  could  have  desired  ;  and  I  should  have  preferred,  for 
this  reason,  to  have  presented  the  Journal  of  the  committee,  withoiu  com- 
ment, to  the  House  of  Representatives.  But,  as  conthcting  opinions  pre- 
vail in  the  committee,  and  are  to  be  submitted  to  the  country  in  the  shape 
of  formal  reports,  I  consider  it  my  duty  to  say  that  I  concur  with  the  com- 
mittee^in  all  the  conclusions  at  which  they  have  arrived,  so  far  as  those 
conclusions  apply  to  the  extent  and  character  of  the  defalcations  of  Sam- 
uel Swartwout  and  William  M.  Price. 

I  should  be  faithless  to  my  duty,  and  do  violence  to  the  most  conscien- 
tious convictions  of  my  judgment,  if  1  did  not  also  declare  my  entire  con- 
currence in  those  conclusions  of  the  committee  which  relate  to  the  con- 
duct of  the  late  naval  officer  of  the  custom-house  at  New  York  ;  to  the 
late  and  present  Solicitor  of  the  Treasury;  to  the  Secretary  and  account- 
ing officers  of  the  Treasury  Department,  including  the  late  Comptroller  of 
that  Department ;  and,  in  that  part  of  the  report  which  reviews  the  con- 
duct of  J.  Hovt,  the  present  collector  of  the  customs  at  the  port  of  New 
York. 

G.  W.  HOPKINS, 
Member  of  the  Committee. 


262  Rep.  No.  313. 


REPORT  OF  THE  MINORITY 


Mr.  0'.vi:n'^,  tVoni  the  uiiuoriry  of  the  conmihtee  herein  jrieiitloned,  sub- 
mitted the  following: 

25th  Congress,  3J  Session. 

Congress  or  the  Umted  States, 

la  the  House  of  Represoitatipes, 

January  17,  1S39. 

Rcsolmd^  'rh;it  tlie  comninnication  from  the  President  of  tiief  United 
States  of  the  Sth  of  December,  1838,  rehitinu,-  to  the  detalcation  of  tjie  laio 
ooiiector  of  the  port  of  New  York,  (except  .so  much  as  relates  to  the  niodt- 
ftoalion  of  the  revenue  laws,)  be  r6"ferred  to  a  select  committee  of  niut; 
nietubers,  to  be  appointed  by  the  lIon.se,  by  ballot,  whose  duly  it  shall  [)e 
to  inquire  into  the  causes  and  extent  of  the  late  defalcations-of  the  cuslom- 
liouse  at  New  York  and  other  places ;  the  length  of  time  they  have  ex- 
isted; the  correctness  of  the  returns  which  have  been  made  by  the  collect- 
ors, naval  and  otlnu'  odicers,  and  the  deposite  banks,  respectively;  and  all 
such  facts  connected  with  said  defalcations  as  may  be  deemed  material  to 
develop  their  true  character. 

Bq  il  further  re.solved,  That  said  committee  be  reqai)-ed  to  inquire  into, 
and  make  report  of,  any  dei'alcations  among  the  collectors,  receivers,  and 
disbursers  of  the  public  money  which  may  now  exist;  who  are  the  d(j- 
fanlters;  the  amount  of  defalcations;  the  length  of  lime  they  have  existed, 
and  the  C'luses  wliich  led  to  them;  anii  th'tt  said  committee  have  power 
to  scad  for  persons  and  pajiers. 

T!ie  Hiinoritv  of  t!i(j  committee  appointed  imder  the  above  resolutions 
of  the' House  of  Repr.;sontatives,  beg  leave  to  report: 

That  the  conmiitti;e  entn'ed  on  the  duties  assigned  them  soop.  after  the 
passaue  of  the  resolutions.  At  their  lirst  meeting  and  organization  in  the 
city  oi'  Washington,  a  resolution  was  offered  in  these  words: 

Rfsolvtuf,  That  the  President  of  the  United  States  be  requested  to  cause 
this  coiUJUittivi  to  be  furnished  by  the  proper  ExecUtivf;  Department  with 
a  table  showing  the  defalcation-;  which  have  occurred  ajnong  the  collect- 
ors, receivers,  and  disbursers  of  public  money,  and  other  public  ofucers, 
since  the  4th  day  of  March,  1839  ;  the  names  of  the  defaulters ;  the  amount 
of  each  defalcatiirn  ;  when  eacii  case  occurred ;  tlie  length  of  time  each  ciise. 
has  existed;  what  steps  have  been  taken  by  the  proper  departments  or 
ollicers  to  prosecute  the  defaulter, and  to  .secure  the  United  Slates  hieacFi 
case;  iuid  what  defiultm-s  are  retained  in  the  sajue  otilces  in  which  they 
became  defaulters,  or  have  Ijeen  ap})ointed  to  other  (^lliees.-^ 
which,  in  the  opinion  of  two  of  ilio  undersigned,  (the  third  not  being  then 
present,)  was  unauthorizfd  by  the  terms  or  the  spirit  of  the  re':o}utions  of 
tlie  Mouse,  which  are  confined  to  the  lute  defalcations,  and  could  not  be 
coustrued  to  include  defalcations  as  far  back  as  the  4tli  March,  1S29,  which 


Rop.  No.  313.  263 

had  been  heretofore  reported  to  roiis:res^  l)y  the  Seerotary  of  the  Treas- 
ury, and  no  action  had  I  hereon  by  the  House.  Under  this  view  of  thu 
subject,  and  beheving  it  to  be  the  first  step  to  give  a  ladlxidinurian  con- 
fitruction  to  the  power  delegated,  (and  wliich  opinion  was  confirmed  by 
subsequent  events,)  one  of  the  undersigned  deemed  it  a  duty  he  ovycd  to 
the  House  To  olFer  an  amendment,  in  these  words:  "Strilce  out  tl>.e  words 
'defalcations  which  have  occurred  among  the  collectors,  receivers,  and  dis- 
bursers  of  public  money,  and  other  ])ublic  oliicnrs,  since  the  4th  day  of 
March,  1829,'  and  insert  the  words  'the  late  defalcations  in  the  custom- 
house at  New  York  and  other  places',  and  any  other  defalcations  prior  to 
1838,  and  not  heretofore  reported  by  the  Departments  to  Congress  and 
the  countr}'.'  "  The  amendment  was  rejected,  and  the  original  resolution 
adopted. 

The  committee  being  impressed  with  the  belief  that  the  great  object  of 
the  House  in  raising  the  committee  was  to  investigate  the  causes  and  ex- 
tent of  the  dedications,  at  the  custom-house  at  New  York,  deemed  it 
proper  to  adjourn  to  that  city,  where  the  defalcations  had  arisen,  the 
witnesses  or  actors  in  the  same  n^sided,  and  the  documentary  evidence 
was  to  be  found.  In  pursuance  of  this  determinatioji,  the  committee  as- 
sembled, on  the  24th  Jaminry,  in  the  city  of  New  York,  and,  without  loss 
of  time,  engaged  in  the  arduous  duties  of  the  investigation.  At  the  sug- 
gestion of  one  of  the  members,  whether  th.e  conunittee  were  to  carry  on 
tlieir  investigation  open  to  the  public  at  large,  it  appeared  to  be  tacitly 
agreed  that  such  a  course  M^^s  calculated  to  embarrass  the  committee,  as 
they  iiad  no  power  to  suppr(>ss  disorder,  in  case  any  should  arise;  but  no 
intimation  was  given  that  the  proceedings  of  the  committee  sliould  Ik; 
ficcreL  In  the  me;in  time.  paragraj)!is  appeared  in  the  newspapers  of  New 
York,  statiug  the  committee  sat  with  closed  doors.  It  was  evident,  also, 
froni  the  wide  and  extended  range  of  the  investigation,  tiiat  many  per- 
sons were  likely  to  be  implicated,  both  oliicers  of  the  Government  and 
private  citizens."  The  undersigned  believed  that  the  committee,  though 
a  select  committee,  was  not  -a  secret  comnii/lec  ;  th.at  the  House,  when  it 
passed  the  resolution,  never  intended  the  prt^ceedings  of  the  conniiiiiee  to 
1)6  kept  secret;  that  justice  required  pronq)t  and  r(/rl.>/  Doficc  sliould  be, 
given  all  persons  accused;  that  the  charge  should  be  made  in  a  public 
manner,  the  accused  confronted  with  the  accuser,  and  that  secrjet  inqui- 
ries were  unknown  to  the  constitution,  and  alien  to  the  practice  and  feel- 
ings of  the  American  people.  The  minority  of  the  committee  entertain- 
ing these  sentiments,  and  not  knowing  tiic  views  of  the  majority  upon 
this  interesting  snbj'et't  of  secrecy ;  and  finding  (though  other  persons  wer<- 
excluded)  two  or  three  witn(>sses  at  one  and  the  same  time  were  adniitted 
mto  the  conmiittee-room,  thereby  subjecting  the  proceedings  of  tlie  com- 
mittee to  misrepresentation,  and  the  action  of  individual  members  to  sus- 
picion and  calunmy.  deeuif^d  it  proper  if)  bring  the  subject,  before  the 
committee  in  a  substantive  form,  and  to  call  for  a  di"^tinct  expression  of 
opinion,  by  proposing  the  following  resolutious  : 

Whereas  all  proceedings  of  an  inquisitorial  character,  and  conducted 
in  secret,  are  at  variance  with  the  principles  of  rcpubHcaii  governuient 
and  abhorrent  to  the  feelings  of  the  American  peoph?: 

And,  as  justice  demands  that  all  persons,  wh(4her  they  be  o,ffi':'crs  of 
the  Government  or  private  eitizens,  "wh.o,  in  tlie  course  of  this  investiga- 
tion, may  be  implicated  or  charged  with  official  misconduct,  or  being  con- 


261  Rep.  No.  313. 

corned  in  aiding  or  abetting  such  misconduct,  should  have  immediate  and 
prompt  notice  of  the  charge,  so  tliat,  if  innocent,  they  may  repel  it ;  and 
that,  whatever  may  be  the  nature  of  the  charge,  it  is  but  reasonable  and 
just  that  the  same  be  jniblicly  brought  forward  and  publicly  answered: 

And,  as  the  members  of  the  cornnnttee  have  no  reason  or  desire  to  dis- 
guise or  conceal  from  public  view  ail  or  any  of  its  actings  and  doings  in 
the  exercise  of  the  delicate  and  responsible  commission  imposed  on  them: 
to  the  intent,  therefore,  of  liaving  no  misunderstanding  on  this  snhject, 

Be  it  resolved,  That  it  is  the  opinion  of  this  committee  that,  though  a 
aelect  conuuittee  appointed  by  the  House  of  Representatives  of  the  United 
States,  it  is  not  a  secret  committee ;  that,  though  invested  with  the  power 
of  inquiry  as  contained  in  tlie  resohuions  of  the  House,  that  power  ought 
to  be  exercised  in  an  open  and  public  manner,  and  should  be  not  only 
free  from  any  direct  charge  of  concealment,  but  from  the  remotest  suspi- 
cion of  it. 

»dnd  be  it  Jurther  resolved,  That  all  the  proceedings  of  this  committee 
shall  be  open  and  public,  as  being  the  mode,  in  the  opinion  of  this  com- 
mittee, best  calculated  to  attain  the  ends  of  justice,  to  satisfy  the  just  ex- 
pectations of  the  people,  and  to  protect  the  rights  and  privileges  of  Ameri- 
can citizens. 

Which,  after  an  amendment  offered,  were  all  finally  laid  on  the  table, 
to  the  astonishment  and  mortification  of  the  undersigned,  and,  no  doubt, 
to  the  surprise  of  the  people  of  the  Uniied  States. 

Under  these  extraordinary  circunistajices,  the  proceedings  of  the  com- 
mittee being  secret  or  public,  according  to  the  judgment,  discretion,  or 
caprice  of  witnesses  or  members  of  the  committee,  the  investigation  was 
carried  on.  Numerous  witnesses  were  examined  as  to  the  extent  of  the 
defalcation. 

The  uudersigued  will  not  go  into  a  detailed  statement  of  the  heads  or 
items,  such  as  forfeitures,  penalties,  bonds,  &c.,  upon  which  Swartwout 
])ased  his  peculations,  ])ut  refer  the  Hoase  to  the  journal  of  the  commit- 
tee. They  will  simply  remark,  that  the  bond  item  gave  the  facility  and 
laid  the  foundation  of  the  i)rincipal  part  of  the  defalcation.  These  pecu- 
lations commenced  at  an  early  period  of  Swartwout's  official  life,  and 
Avent  on,  increased  and  increasing,  until  its  close.  The  art  and  manage- 
ment with  which  it  was  concealed  will  attract  attention.  One  occurrence 
referred  to  in  the  testimony  is  not  the  least  remarkable  in  this  exiiaordi- 
nary  ailair.  When  Swartwout,  in  \'6'M,  was  renominated  by  the  then 
President  of  the  United  States,  the  nomination  was  referred,  as  usual,  by 
the  Senate  to  a  committee,  which  comnnttee  was  composed  of  a  majority 
opposed  to  the  then  administration.  In  the  investigation  of  Swartwout's 
accounts  before  that  comniitlee,  suspicion  arose  that  he  was  in  default. 
Air.  Shultz,  the  then  auditor  of  the  custom-house,  a  witness  examined  by 
this  cormnittee,  was  called  upon  by  the  committee  of  the  Senate  to  aid 
them  in  the  examination  and  to  give  them  intbrmation  in  regard  to 
Swartwout's  accounts;  and  after,  it  is  presumed, a  thorough  investigation, 
the  committee  reported  favorably  to  the  Senate,  and  the  appointment  was 
confirmed  by  the  then  existing  Senate,  composed  of  a  majority  of  Senators 
opposed  to  the  administration  ;  thongli  there  was  at  this  time  a  deliilca- 
lion  to  a  considerable  aniount  known  to  Mr.  Shult/,  but  not  comnuini- 
cated  to  the  committee  of  the  Senate,  as  will  be  seen  by  reference  to  the 
following  questions  and  answ-rs: 


Rep.   No.  313.  265 

Question  2G.  Did  you  know,  when  you  were  before  the  committee  of 
the  Senate  in  lSo4,  that  Mr.  Swartwont  liad  not  paid  over  to  the  cashier 
the  sum  ot'more  than  §30,000  received  by  him  for  Ibrfeitures? 

..dmiccr.  I  knew  that  Mr.  Swartwout  had  at  that  time  more  than 
jS30,000  for  forfeitures  whicli  he  had  not  paid  over  to  the  casliicr. 

Qucition  27.  Did  you  inform  the  committee  of  the  Senate,  or  any  offi- 
cer of  tile  Treasury  Department,  that  Mr.  Swartwout  had  not  paid  over 
the  money  received  by  him  ibr  forfeitures  ;  and,  if  not,  why  ? 

*/insivcr.  I  did  not,  becnusc  [did  not  think  it  my  duty. 

Question  33.  Why  did  you  not  regard  it  as  your  duty  to  inform  tiie 
Secretary  of  the  Treasury,  or  the  committee  of  the  Senate,  that  Mr.  Swart- 
wout had  not  paid  over  the  money  received  from  the  marshal  for  forfeit- 
ures ? 

^insiver.  Because  wo  clerks  of  the  custom-house  consider  ourselves  fis 
in  the  service  of  the  collector,  and  not  in  the  service  of  the  United  States. 
The  "collection  law"  does  not  seem  to  regard  the  clerks  of  the  collector 
as  in  the  service  of  the  United  States,  as  the  markers  and  weighers,  &c., 
who  are  appointed  by  the  Treasury  Department.  We  have  always  tlionght 
ourselves  the  private  assistants  of  the  collector.  It  was  my  duty  to  ren- 
der th»  accounts  truly,  and  credit  the  United  States  truly,  as  I  did;  but 
not  to  inquire  into  tlie  private  transactions  of  the  collector. 

These  answers  afford  a  valuable  instance  of  custom-house  morality  and 
patriotism. 

That  the  defalcations  should  have  been  so  long  concealed  from  the  De- 
partment and  the  public,  though  at  first  a  matter  of  surpri'-e,  will  create 
no  great  astonishment  wlien  Mr.  Shultz's  testimony  is  considered. 

The  maimer  of  keeping  the  accounts  in  the  custom-house  was  calcu- 
lated to  effect  the  object  of  concealment.  The  auditor  of  the  custom- 
house and  the  naval  olficcr,  intended  as  checks  upon  the  collector,  were 
kept  in  total  ignorance  as  to  the  true  state  of  the  accounts;  and,  as  the 
Treasury  Department  depended  on  their  statements,  it  was  equally  igno- 
rant. 

Two  of  tiie  witnesses,  Ogden  and  Phillips,  cashier  and  assistant  cashier 
of  the  custom-house,  say,  they  f:e(|uently  made  no  entry  at  all  in  the  cash- 
book,  of  moneys  abstracted  by  Swartwout  for  his  private  expenses.  Wheti 
bonds  were  paid,  no  credit  was  given  for  them  The  cash-book  being  in 
the  possession  of  these  individuals,  they  furnished  such  statements  to  the 
auditor  as  suited  their  purposes,  and  concealed  the  accurate  and  true  state 
of  the  account. 

Some  effort  was  made  in  the  course  of  the  investigation,  to  show  that 
Swartwout  always  made  to  the  Department  at  Washington  true  and  ac- 
curate statements  of  the  u^;s!;ref^(ite  amount  of  his  accounts,  and  thereby 
drawing  an  inference,  that  if  they  had  been  carefully  examined  the  de- 
falcations could  soon  have  been  detected.  The  undersigned  are  of  opinion 
such  is  not  the  fact,  and  that  it  was  scarcely  possible,  under  any  circum- 
stances, to  make  the  detection  in  any  other  manner  than  by  the  personal 
inspection  of  the  bonds  and  the  books  of  the  custom-house.  On  this  branch 
of  the  subject  we  beg  leave  to  refer  to  the  testimony  of  Mr.  Woodbury 
and  the  First  Auditor  at  Washington,  as  contained  in  the  journal. 

Mr,  Fleming,  the  auditor  at  that  time,  and  now  auditor  of  the  custom- 
house, (a  very  respectablG  and  intelligent  witness,)  testifies  that  he  had 
18 


266  l^ep.  No.  313. 

Sfiispicions  in  Jnne.  1837,  that  there  was  a  deficiency  in  the  bond  account: 
he  communicated  the  i^uspicion  to  Mr.  Pliiliips,  the  assistant  casiiier,  who 
answered  hiin  in  a  very  laconic  manner,  "tliat  credit  was  given  in  the 
cash-book  lor  all  the  bonds  (hat  Avere  paid  ;  tlic  rest  were  in  suspense." 
He  also  suacfc',  that  though  the  accounts  ol"  Swartwout  transmilttd  to  the 
Department  at  Washington  contained  a  true  and  accurate  statement  of 
Jhe  uggregdit^  uDumntc,  there  was  a  deficiency  and  concealment  of  the 
true  cash  balance^  as  was  afterwards  discovered  by  the  examination  of 
ik\Q  cash-book  of  the  custoin- house,  in  a  sum  exceeding  six  hundred 
thousand  dollars.  In  this  manner  the  fraud  was  carried  on  and  kept 
secret.  Mr.  Fleming  also  states,  that  but  for  tlie  suspension  of  the  pay- 
ment of  the  bonds,  and  specie  payments  by  the  banks,  tlie  frauds  could 
3101  have  been  carried  on  without  exciiing  suspi'-ion  and  loading  to  de- 
jection. 

Great  credit  is  undoubtedly  due  to  the  present  collector  and  a^uditor  of 
iiie  custom-iicuse  for  making  the  discovery  as  early  as  it  was  niade.  The 
urgency  of  the  former  to  liavc  his  accounts  settled,  and  prepared  tor  trans- 
mission to  Washington,  in  a  great  degree  ]»roduced  and  hastened  the 
development.  J?ut  for  this  circumstance,  the  combination  and  conspiracy 
existing  in  the  custom-house  to  defraud  the  Government,  would  have  had 
She  etfect  to  conceal  it  a  much  longer  time. 

It  may  be  confidently  asserted,  that  under  the  existing  laws,  and,  in- 
deed, under  any  safeguards  that  may  be  established  to  protect  the  public 
purse,  vrithout  honor  and  integrity  in  the  public  officer  it  may  and  will 
%%  plundered,  and  the  fact  concealed  for  a  considerable  time  without  the 
possibility  of  discovery. 

Tlie  business  of  the  custom-house  at  New  York  is  so  various  and  com- 
jsilicated,  that,  vmder  the  provision  of  the  act  of  Congress,  the  collector  is 
allowed  three  months  after  the  expiration  of  eacli  quarter  to  make  his 
returtis;  frecpiently,  from  necessity  this  time  has  been  extended  to  four 
ifioiiths;  two  or  three  months  are  consumed  in  the  i\nditor  and  Comp- 
iro'ler's  oflicos  at  VS'ashington  in  auditing  and  settling  these  accounts. 
Until  this  is  done,  the  defalcations  cannot  bo  certainly  known ;  so  that 
they  may  be  concealed  from  five  to  seven  montlis,  and  that  under  the 
operation  of  the  law. 

liy  reference  to  the  journal,  it  will  be  seen  that  there  is  some  discrepancy 
Bi  the  testimony  on  the  subject  of  the  extent  of  the  loss.  Most  of  the 
witnesses  agree  that  the  amount  of  defalcation  corr  :sj)onds  with  the  state- 
ments iicretofore  made  by  the  ollicers  of  the  Government  who  were  sent 
to  New  York,  at  or  immediately  alter  tlie  same  was  made  known,  and 
whose  reports  have  been  submitted  to  the  House. 

The  witness  (Mr.  Shultz)  before  alluded  to,  former  auditor  of  the  cus- 
troii-liouse,  and  who  for  a  long  period  of  time  filled  that  station,  reduces 
Ly  his  testimony  the  amount  in  a  considerable  degree.  The  House  has 
before  seen  what  reliance  should  be  placed  on  the  evidence  of  Mr.  Shultz. 
As  additional  evidence  of  the  corjfidenee  to  be  given  him,  the  journal  is 
reibrred  to,  where  Mr.  Shultz  states  that  the  weekly  returns  made  to  the 
Secretary  of  the  Treasury  under  the  regulation  of  the  Department  m- 
chideil  the  items  forfeitures  and  penalties,  and  which,  in  his  opinion, 
would  have  enabled  the  Secretary  in  fifteen,  minutes  to  have  detected 
the  defalcations,  so  far  as  those  items  are  concerned,  though  testified  to 
■with  great  confidence,  and  with  an  apparent  knowledge  of  the  fact,  is 


Rep.  No.  313.  267 

totally  disproved  by  the  chief  cltjrk  of  the  Treasury  Department,  and  the 
docuiiieutary  evidence  derived  from  that  Department,  to  wit,  Uie  weekly 
returns  tlifniselvcs.  Mr.  Shultz  is  also  a  very  aged  man,  intirm  in  body 
and  mind,  and,  like  most  old  persons,  better  able  lo  give  a  clear  and  dis- 
tinct account  of  transactions  of  long  standing  than  recent  occurrences. 
But,  whatever  may  be  the  accurate  amount,  the  ostensible  sum  total 
established  by  un([uesiionab!e  teslimoiiy  is  very  large.  The  actual  or  real 
amount,  however,  lost  to  tiie  Government,  concerning  which  no  inform- 
ation can  be  obtadned,  it  is  impossible  to  say,  and  can  bo  only  a  subject 
of  conjectiu-e. 

One  fact  broujdit  forth  by  the  investigation  is  of  a  remarkable  charac- 
ter and  deserves  notice.  Mr.  Thompson,  the  cashier  of  the  Bank  of  Ameri- 
ca, (then  one  of  the  deposite  banks,)  states  that  checks  of  different  amounts, 
some  for  very  large  sums,  were  indiscriminately  drawn  by  Swartwout  or 
his  depntie'},  and  paid  by  tlie  bank.  This  practice,  dangerous  at  all  times 
to  the  Governn:ient  and  the  collector,  was  peculiarly  hazardous  under  the 
administration  of  the  late  collector,  whose  business  habits  did  not  qualify 
him  for  a  strict  scrutiny  into  the  fiscal  atfairs  of  liis  office.  By  it,  an  oppor- 
tunity was  afforded  and  temptation  given  to  peculation  in  the  custom- 
house. 

The  causes  which  combined  to  produce  the  defalcation  are  various  : 

The  first  was  the  unfortunate  appointment  by  the  President  and  con- 
firmation by  the  Senate,  for  two  successive  terms,  of  a  man  like  Swart- 
wout, who,  from  habits  and  pursuits,  was  totally  disqualified  to  discharge 
the  duties,  of  collector  at  New  Vork ;  a  port  t!ie  most  important  in  the 
Union,  and  where  one-half  if  not  two-thirds  of  the  revenue  of  the  Gov- 
ernment is  collected. 

The  second  was  the  disposition  of  Swartwout  to  engage  in  large  and  haz- 
ardous spectdalion=5 — a  passion  the  most  lasting  in  its  excitement,  and 
most  disposed  to  increase  by  the  food  it  feeds  on  ;  and  in  an  ofiicer  of  the 
Government  intrusted  with  large  sums  of,  money,  the  most  dangerous  in 
its  operation  upon  him  as  an  individual,  as  well  as  the  Government. 

There  is  much  testimony  on  this  head.  Some  of  the  witnesses  best 
qualified  ;o  judge — the  brokers  of  New  York — state,  in  technical  language, 
he  was  a  s^reat  operator  in  stocks  in  ^Vall  street ;  like  all  business  of  this 
description,  it  was  liable  to  great  fluctuations,  Swartwout  sometimes  win- 
ning, at  others  losing  large  sums  of  money.  The  evidence  as  to  actual 
loss  or  aain  is  by  no  means  satisfactory. 

Tlie  third  cause  which  contributed,  in  some  degree,  was  the  want  of 
a  regular  and  periodical  examination  of  the  bond  account  in  the  Audit- 
or's odice  in  Washington.  One  of  the  witnesses,  and  a  clerk  in  that  bu- 
reau, says  the  bond  account,  prior  to  the  defalcation,  had  not  been  exam- 
ined since  1832.  Before  that  time  it  had  been  the  practice  in  the  olfice. 
Why  it  was  abandoned  he  knew  not,  unless  from  an  opinion  it  was 
not  necessary,  or  that  there  was  not  a  sufficient  number  of  clerks  in 
the  office  to  discharge  the  duties,  at  all  times  very  onerous;  there  being, 
at  a  moderate  calculation,  not  less  than  30,000  bonds  taken  in  a  year  in 
New  York  alone.  liut  whatever  may  have  produced  the  abandonment 
of  the  practice,  it  was  calculated  to  lead  his  successor  in  office  into  error: 
that  successor  would  naturally  follow  the  practice  existing  at  the  time  in  his 
l)ureau,  as  the  one  adopted  from  experience,  and  found  to  answer  the 
public  exigencies.     No  blame  can,  therefore,  be  attributed  to  the  present 


268  Rep.  No.  313. 

First  Auditor,  lie  having  been,  previous  to  these  occurrences,  but  a  short 
time  in  otiico,  and,  of  course,  not  well  qualilied  to  judge  of  the  ))ractical 
utility  in  this  particular  branch  of  his  duty.  On  iliissuliject  we  beg  leave 
to  ret'cr  to  his  lostimony  as  contained  in  tlie  journal. 

Thefimrfh  cause  was  the  non-execution  of  Swartwout's  official  bond  for 
a  great  length  of  time  after  his  last  appointment  in  1834.  The  bond  bears 
dale  in  1S3  l,bnt  remained  in  the  custom-house  unexecuteduntil  1837,  when 
it  was  ceniiied  by  the  district  attorney  of  New  York,  Mr.  Price,  and  the 
Coiuptrollcr  at  Washington.  For  nearly  three  years  no  bond  of  the  collector 
of  iNew  York,  the  principal  port  in  the  Union,  was  in  the  Comptroller's 
office  ;  and  the  collector  was  left  to  carry  on  the  great  fiscal  operations  of 
the  c*istom-house  without  any  security,  except  that  based  upon  his  own 
responsibility.  As  to  the  sufficiency  of  the  security  afforded  the  Govern- 
ment by  the  bond  when  executed,  that  is  a  subject  not  susceptible  of  pos- 
itive proof,  imtil  tested  by  legal  decision,  and  must  remain  a  pnatter  of 
speculation  and  o])inion. 

Should  the  security  in  the  bond  be  hereafter  found  insufficient,  it  will 
be  attributable  to  Price,  the  district  attorney  of  the  city  of  New  York,, 
where  the  sureties  resided,  and  who,  before  he  certified  the  bond,  did 
make,  oi  ought  to  have  made,  the  necessary  inquiries  as  to  their  pecuni- 
ary responsibility. 

The  bond,  though  executed  at  so  late  a  period,  will  protect  the  Gov- 
ennnent  as  far  as  the  amount  extends  ;  a  large  part  of  the  defalcation  hav-- 
ing  taken  place  after  its.exccution,  and  theretore  embraced  by  it. 

It  is  true,  little  security  will  be  afforded  by  it  to  the  Government, 
when  the  penal  sum  contained  in  the  bond  is  con>pared  with  the  large 
amount  of  the  defalcation  ;  and  had  a  regular  account  of  the  bonds  been 
kept  m  the  Auditor's  office,  tliere  is  very  strong  and  conclusive  testimony 
to  show  it  would  have  iieither  prevented  nor  detected  the  defalcation. 

The  bond  of  Swartwont  not  being  executed  and  deposited  in  the 
office,  nor  any  entry  of  his  appointment  as  collector  made  by  the  Comp- 
troller of  1834,  was  such  a  want  of  ofiicial  diligence  as  no  one  could  have 
sup[)OS('d  or  anticipated,  and  could  not  have  excited  any  suspicion  in  the 
mind  of  his  hmncdiate  successor  (not  the  present  acting  Comptroller,  whc»' 
came  into  office  after  the  discovery  of  these  defalcations,)  so  as  to  induce 
him  to  ord(T  an  examination;  he  took  it  for  granted  the  usual  course  had. 
been  pursued  in  relation  to  Swartwout's  appointment  and  bond.  The 
neglect,  therefore,  of  the  former  Auditor  and  Comptroller,  in  these  par- 
ticulars, is  strange  and  unaccountable. 

The  only  excuse  for  it  is  to  be  ibund  in  the  fact,  that,  a  short  time  anterior 
to  these  occurrences,  and  long  before,  the  heads  of  these  bureaus  were 
two  aged  men,  incapable,  from  physical  and  mental  infirmities,  to  dis- 
charge the  duties  im})osed  on  them  with  the  diligence  and  strict  supervi- 
sing attention  that  these  important  offices  demanded.  The  evidence  on 
the  journal  on  this  subject  is  very  strong.  The  retention  of  aged  persons 
in  olficc  who  have  grown  old  in  the  service  of  the  state,  is  an  evil  inci- 
dent to  all  Governments,  and  more  particularly  to  our  democratic  one. 
To  dismiss  an  officer  under  such  circumstances,  is  a  harsh  measure,  and 
Well  calctdated  to  shock  the  feelings  and  enlist  the  sympathies  of  the  peo- 
ple ;  to  retain  him  when  incapable  of  performing  his  functions,  is  dan- 
gerous to  the  secnrily  of  the  public  treasure,  and  injurious  to  the  best  in- 
terests of  the  people.     Better  would  it  be  to  let  the  civil  officers  of  Gov- 


Rep.  No.  313.  2G9 

ernment  who  have  laithfuliy  discharged  their  duty  tor  many  years,  retire 
at  a  certain  designated  period  ot'  Ufe  upon  a  pension,  than  to  have  them 
remain  in  ofliee  but  the  sliadows  of  themselves.  Upon  the  |)rinciple  of 
economy  alone,  so  dear  to  the  American  people,  the  course  suugested 
would  be  highly  advantageous  to  the  country. 

The  fifth  cause  was  the  irregular  and  loose  manner  in  which  the  whole 
business  of  the  custom-house  was  conducted,  (and  which  has  Iteeii  advert- 
ed to  before  in  this  report ;)  and  from  the  fact  that  the  naval  otFicer  who, 
imder  the  laws,  was  intended  as  a  check  upon  the  collector,  has  not,  in 
the  execution  of  his  functions,  supervised  the  accounts  with  that  care  and 
diligence  tiie  impoitaiice  of  the  subject  demanded. 

7'i^e  sixth  cause  is  to  be  found  in  a  practice  grown  up  of  late  years — 
the  keeping  by  the  collector  wliat  is  termed  a  "suspense  account,"  under 
which  head  he  retains  large  sums  of  money  to  meet  protests  and  suits 
upon  duties  overpaid,  &c.,  and  which,  for  his  own  security,  he  is  in  a 
great  measure  compelled  to  retain;  the  courts  oi  justice  having  determine^ 
in  such  cases  that  he  is  personally  liable.  Whether  these  decisions  are 
founded  on  true  and  just  principles  of  national  policy,  the  undersigned 
will  not  undertake  to  decide  ;  but,  they  may  be  |)ermitted  to  remark,  the 
sooner  there  is  som.e  legislative  action  on  this  subject,  the  better  for  the 
country  and  the  collectors. 

The  seventh  cause  was  the  convulsion  and  total  derangement  produced 
in  the  business  of  the  custom-house  by  the  suspension  of  the  paymtMit 
of  bojids  by  tiie  Government,  and  the  suspension  of  specie  payments  by 
the  banks.  The  amount  of  bonds  operated  upon  by  these  causes  are  con- 
tained in  the  answers  of  Mr.  U'oodhury,'^  these  u'ords: 

Question  .'37.  What  amount  of*  bonds  were  due.  or  running  to  maturi- 
ty, a  short  time  before,  at  the  time,  and  during  the  time,  of  the  convulsion 
produced  by  the  sus[)ension  of  specie  payments  by  the  banks,  and  coming 
under  the  inslruciions  of  the  Solicitor  of  the  Treasury,  in  May,  1837? 

^Insiuer.  In  reply,  I  would  sate,  that  the  amount  of  bonds  falling  due 
lietween  the  1st  of  May  and  thc.lsl  of  October,  1S37,  in  the  United  States, 
%vas,  prob.ihly,  from  five  to  six  milhons.  I  have  not  exannned  to  see  the 
exact  amount ;  bnt  of  those,  some  were  put  in  suit,  and  neither  paid 
nor  postponed  under  the  instructions  of  the  Solicitor,  in  May,  1S.'17,  and 
others  were  paid  without  suit  or  postponement;  so  that  the  ainoimt  post- 
poned under  these  instructions  was  estimated  to  be  not  far  from  four  mil- 
lions of  dollars. 

Question  — .  W'hat  amount  of  bonds  came  under  ilv  provisions  of  the 
acts  of  Con2;ress  of  1S.37:  the  one  produced  by  the  fire  in  New  York, 
a!id  the  other  produced  by  the  suspension  of  specie  payments  by  th« 
banks? 

^nsivev.  In  reply,  I  state,  that  the  postponements  actually  made  under 
the  two  acis  in  Octob .r,  as  to  former  bonds  and  merchandisi'  on  which 
cash  duties  had  accrued,  are  estimated  to  have  been  from  four  to  fcnn-  and 
a  half  milhons.  Tlie  amount  coming  witliin  the  operation  of  relief  asked 
and  granted  on  account  of  the  fire,  is  supposed  to  have  been  about 
JS  1,063.000. 

As  also  to  the  following  question  : 

Question  1.  Please  stale,  should  a  combination  exist  between  the  dis- 
trict attornev  ani  the  collector  to  defraud  the  Government,  by  placing 


270  Kep.  Xo.  313. 

bonds  which  have  actually  been  paid  in  liis  weekly  account,  transmitted 
to  your  Department,  under  ihe  head  of  bonds  suspended,  or  bonds  in  suit, 
if  there  are  any  means  in  your  power,  as  Secretary  of  the  Treasury,  to 
make  the  detection,  except  by  personal  inspection  and  examination  of  the 
bonds  at  New  York  ? 

Mr.  Woodbury  answers  in  the  negative,  and  gives  his  reasons  in  ex- 
ienso,  as  will  be  seen  by  reference  to  the  journal. 

The  suspension  of  specie  payments  by  the  banks,  so  sudden  and  unex- 
pected, at  a  period  of  profound  peace,  and  under  the  appearance  of  great 
national  prosperity,  was  well  calculated  not  only  to  derange  the  bu  iuess 
of  the  custom-house  of  New  York,  but  did  convulse  the  whole  trade  of 
this  country,  and,  in  its  consequences,  affected  that  of  those  states  or 
kingdoms  with  whom  we  had  commercial  relations  A  contingency  so 
extraordinary  could  not  have  been  anticipated;  and,  consequently, there 
were  no  existing  laws  to  protect  the  Government  from  its  baneful  effects. 

By  rendering  the  acts  of  Congress  in  relation  to  the  safe-lcecping  of  the 
public  money  a  dead  letter,  it  made  the  banks  cease  to  be  depositories  of 
the  public  money;  took  away  the  authority  of  the  Department  to  receive 
their  paper  in  payment  of  public  dues ;  and,  from  ne.cessity,  threw  the 
payment  of  the  bonds  into  the  custom-house,  and  into  the  hands  of  Swart- 
wout  and  hi.j  agents,  unc mtrolled  by  any  les^isUitive.  jirovision,  or  any 
other  safeguards  tliat  otherwise  would  have  been  provided  to  protect  the 
public  purse. 

It  may  be,  and  no  doubt  will  be,  said,  that,  notwithstanding  this  act  of 
the  banks,  if  their  paper  had  been  received  by  the  Government,  and  the 
bonds  still  p  lid  in  the  banks,  the  loss,  or  a  greater  part  of  it,  would  not 
have  been  sustained.  The  u.ndersigned  will  not  undertake  to  decide  what 
would  have  been  its  ultimate  effect. 

The  legality  and  propriety  of  such  a  measure,  as  an  act  of  the  Govern- 
ment, is  submitted  to  the  good  sense  and  intelligence  of  the  American 
people  ;  the  reason  for  the  Secretary  of  the  Treasury  not  adopting  it,  is  to 
be  found  in  the  acts  of  Congress,  and  the  ])ractice  of  the  Government 
founded  thereon,  which  prohibit  the  otHccrs  of  the  revenue  receiving  in 
payment  any  thing  but  gold  or  silver,  or  its  ecpiivalent.  The  Secretary  of 
the  Treasury  was  not  warranted  by  law  to  receive  the  paper  of  these 
banks;  if  he  had  done  so,  he  would  have  been  liable  to  impeachment; 
and,  from  the  known  tcliiper  of  the  times,  would,  in  all  probability,  have 
been  impeached.  If  authority  to  receive  such  paper  had  been  given, 
it  would  have  been  not  only  a  violation  of  the  laws  of  the  land,  but  dis- 
reputable to  the  office  and  degrading  to  the  country ;  it  would  have  had 
a  tendency  to  give  otficiai  countenance  to  this  act  of  the  banks,  so  unjust 
and  highly  injurious  to  the  interests  of  the  people,  and  calculated  to  fix  a 
stain  on  the  national  character.  If  an  option  Iwd  been  left  him,  he  could 
not,  as  a  public  officer,  and  a  patriotic  m.an,  Ivave  hesitated  in  looking  to, 
and  holding  on  in  this  great  emergency,  to  the  individual  responsibility 
of  the  bondsman,  rather  than  receive  the  paper  of  banks  which  had  ta-' 
ken  the  law  into  their  own  hands  ;  had  legislated  for  themselves,  and 
themselves  alone;  and  had  violated  the  obligations  of  their  charters  and 
the  faith  pledged  to  the  public.  This  cause,  therefore,  opened  a  field  for 
those  engaged  in  the  frauds  and  peculations,  by  placing  the  money  of  the 
people  in  the  liands  of  Swartwout  and  his  subordinates,  uncontrolled  by 


Hep.  No.  313.  271 

law,  and  was  seized  upon  to  carry  on  a  most  daring  system  of  robbery 
and  plnnder. 

By  reterence  to  tlie  testimony,  it  will  l>o  seen  the  large  defalcation  oc- 
curred 01)  the  bond  account,  and  in  the  first  and  second  quarters  of  1S37, 
a  short  time  prior  to  and  snb.seciuent  to  the  suspension  of  speci;;  payments 
by  the. banks.  The  bond  account,  however,  had  been  dcraneed,  no  doubt, 
in  a  very  considerable  degree,  before  1837,  by  the  renewal  of  bicid^  under 
the  acts  of  Congress,  occasioned  by  the  fue  in  New  Yoik,  and  advantage 
taken  of  it. 

The  eighth  cause,  and  one  of  tlie  principal,  was  a  combination  of  un- 
principled men,  oillcers  in  the  custom-house,  to  detVoud  tlie  Government 
and  plunder  the  people.  Without  this  combination  Swartwout  could  not 
have  concealed  his  frauds  a  day.  certainly  not  a  week.  That  men  of 
former, good  character  and  standing  in  society  should  have  entered  into 
the  coiispir.icy,  aiding  and  abetting  Swartwout  in  his  peculations  of  the 
public  purse,  is  a  subject  not  only  of  deep  mortification,  but  a  national, 
disgrace. 

It  is  a  deplorable  and  remai-kable  instance  of  the  corruption  of  tlie 
tiiujs  in  wiiich  we  live.  It  becomes  still  more  remarkable  from  the  fact, 
that  o:i3  of  tie  me  i  (P.iillips,  th?.  as-Jistaat  cas'iier  of  the  cus,om-h  ouse) 
so  aiding  Swartwout  in  his  pccmlations,  when  examined  as  a  witness^ 
and  the  question  was  propounded  to  him  by  a  member  of  the  committee, 
"  Why, knowing  as  he  did  that  Swartwout  was  defrauding  the  Government, 
he  did  not  give  intbrmatiou  to  the  Treasury  Department?''  answered^ 
with  grea-t  coolness  and  composure,  in  conformity  with  the  custom-house 
practice  and  the  reason  giuoi  for  it  l)y  Mr.  Shultz,  '•  that  he  was  the 
clerk  of  Mr.  Swartwout,  and  did  not  hke  to  disclose  the  secrets  of  his 
employer;"  apparently  considering  as  a  virtue  his  fidelity  to  a  public 
officer,  who,  with  the  witness's  co-operation  and  active  agency,  was  de- 
frauding the  people.  These  developments,  and  the  inferences  naturally 
drawn  fro  n  them,  must  irresistibly  lead  the  llousi  to  the  conclusion  thaE 
the  safety  of  the  public  money  iinporioasly  demands  that  no  officer  of 
the  custom-honse  connected  with  its  fiscd  concerns  should  be  appointed 
by  the  collector  himseU',  but  should  receive  the  appointment  from  the 
Government,  and  give  his  sole  allegiance  to  the  country. 

Other  causes  not  known  ma3^  and  no  doubt  did,  contribute  to  produce 
tlie  defalcations.  The  subject-matter,  however,  both  in  relation  to  the 
extent  and  the  causes  of  the  delaleation,  is  still  involved  in  some  uncer- 
tainty. The  character  of  the  testimony  is  more  than  doubtful.  Some  of 
the  witnesses,  and  those  best  acquainted  with  the  liicts,  were  active  agent.s, 
if  not  participators,  in  the  frauds;  the  fountain,  therefore,  from  which  we 
derive  our  information,  or  the  greater  portion  of  it,  is  impure  and  defiled. 
No  reflecting  man,  acquainted  with  the  operations  of  the  human  heart 
and  the  springs  of  human  action,  will  or  can  place  much  reliance  in  tes- 
timony thus  characterized  and  stamped  with  the  impress  of  fraud  and 
profligacy.  Each  man,  and  tlie  Mouse  collectively,  will  give  credence  to 
it  according  to  the  degree  of  credulity  he  or  they  may  possess;  and,  at 
last,  a  great  deal  must  depend,  like  the  mysteries  of  our  iioly  religion, 
upon  the  faitli  of  the  individual  searching  for  truth. 

'I'he  disposition  Swartwout  made  of  these  enormous  sums  abstracted 
from  the  public  coffers  is  an  enigma  not  easily  solved.  The  evidence  fur- 
nishes no  clew  to  it.     The  inconsiderable  sum  left  in  the  hands  of  Ogdea, 


272  Mep.  No.  313. 

and  the  value  of  tlie  real  estate  in  dilTerent  parts  of  the  Union,  form  but.  a 
very  inconsiderable  item  on  the  credit  side  of  the  account;  and  some  of 
the  witnesses  say  Swart wout  is  now  a  needy  man.  That  he  should  have 
been  possessed  of  so  little  property,  can  only  be  accounted  for  on  philo- 
sophical principles  and  the  natural  operation  of  the  human  mind.  Money 
thus  acquired  is  not  long  retained;  it  is  soon  dissipated  in  extravagancies 
that  leave  no  trace  behind  them.  Much  credit  is  due  to  Mr.  Hoyt,  the 
present  collector  of  New  York,  and  the  Solicitor  of  the  Treasury,  through 
whose  instrumentality  the  money  in  Ogden's  hands,  and  the  security  af- 
forded by  the  real  estate,  were  obtained.  The  money,  as  Ogden  testifies, 
was  intended  by  Swartwout  for  other  purposes,  and  would  liave  been  so 
applied,  but  for  the  sudden  arrival  and  unexpected  and  vigorous  applica- 
tion of  the  Solicitor  of  the, Treasury  to  him,  as  agent  of  Swartwout,  to 
pay  the  same  to  the  United  States. 

During  tlie  progress  of  the  inve^^tigation,  and  before  it  had  closed,  in 
relation  to  Swartwout,  a  member  of  the  committee  submitted  the  follow- 
ing resolution  : 

Resolvtd,  That  Mr.  Hoyt,  the  collector,  be  required  to  furnish  this 
comnjiftee  with  all  letters  to  and  from  the  Treasury  Department  and  the 
collector  of  the  customs  at  New  York ;  and,  also,  all  orders  and  instruc- 
tions from  the  Treasury  Department  to  said  collector  since  the  1st  day 
of  January,  1837,  up  to  Xh^.  jyresent  day.  and  the  answers  of  said  collec- 
tor, if  any,  to  said  orders  and  instructions,  not  already  furnished  to  this 
committee.  » 

This  resolution  afforded  another  instance  of  the  construction  given  by 
the  majority  of  the  committee  to  the  auth.ority  contained  in  the  resolution 
of  the  IJou.se,  and  opened  a  wide  field  of  iii(]uiry,  never  anticipated  by 
tlie  House  or  the  country.  One  of  the  undersigned,  therefore,  moved  the 
following  amendment  : 

'■'  Provided,  The  said  letters,  orders,  and  instructions  have  reference  to 
the  late  defalcations  embraced  in  the  inquiry  of  this  committee." 

The  amendment  was  rejected,  and  the  resolution  adopted.  Satisfied  it 
never  was  the  intention  of  the  House  by  its  resolution  to  authorize  the 
conmiittee  to  go  into  the  investigation  of  the  actings  and  doings  of  all 
and  every  collector  and  disbiu'ser  of  tlie  public  money,  charged  or  not 
charged  with  defalcations;  and  believing  that,  if  siicii  was  the  intention 
of  the  House,  it  had  no  constitutional  power  to  invest  the  committee  with 
such  authority — for,  though  the  House,  in  the  exercise  of  its  high  parlia- 
mentary power,  lias  frequently^  raised  committees  to  examine  into  al- 
leged frauds,  it  has  never  undertaken,  by  its  sole  autho/'it}/,  to  appoint  a 
ej)m!nitfee  as  a  fishing  committee  to  travel  tlnvHigh  the  country  and  collect 
materials  for  the  accusation  of  the  oUicors  of  the  Government.  So  far 
from  this,  the  undersigned  liave  always  believed,  in  this  freecoimtry,  reg- 
ulated by  law,  the  acceptance  of  an  otHcc  by  an  individual  does  not  de- 
prive him  of  the  rights  of  a  citizen ;  and  before  he  can  be  called  upon  by 
the  action  of  the  Hou.se  ■■/  Heure^.entatives  nlom  to  defend  himself,  he 
must  be  charged  with  sonje  offence — that,  however  expedient  and  proper 
it  maybe  to  supervise  the  conduct  of  public  officers,  charged  or  not 
enlarged  with  ollicial  misconduct,  so  far  as  the  latter  are  concerned,  it  can- 
not be  done  but  by  a  legislative  act,  passed  in  the  forms  [)rovid*jd  by  the 
constitution. 

Freedom  consists  in  being  governed  by  known  laws,  and  not  by  the 


Kep.  No.  313.  273 

discretion  or  caprice  of  eitlier  branch  of  Congress.  Tiio  officer  of  the 
Government,  against  whom  no  cliargc  is  made,  however  innocent,  mnst 
be  blind  indeed  if  he  does  not  see,  his  sensibility  must  he  blunted  if  he 
docs  not  feel,  that  the  iuqviry  alone  casts  a  shade  of  snspicion  on  his  char- 
acter;  that,  in  pnbhc  opinion,  he  is  more  than  half  condenuied  by  the  act 
of  the  House.  Such  proceedings,  if  tolerated,  are  calculated  to  degrade 
the  oliicer  in  his  own  esteem,  and  in  that  of  the  public;  and  the  inevitable 
consequence  is  to  drive  from  the  service  of  the  state  every  honorable  man. 

To  allow  either  House  of  Congress,  by  its  action  alone,  to  direct  its 
scrutiny  into  t!ie  conduct  of  this  or  that  particular  officer,  without  charge, 
allegation,  or  suggestion  of  misconduct,  would  be  to  usurp  an  authority 
not  recognised  by  the  constitution,  and  liable,  in  high  party  times,  to  great 
abuse.  It  would  be  an  arbitrary  exercise  of  power  of  no  ordinary  char- 
acter— similar  to  the  .sic  void  of  the  Roman  lady.  It  would  be  the  con- 
centrated essence  of  despotism. 

For  the  purpose  of  testing  this  great  principle,  and  ascertaining  the  sense 
of  the  committee  on  it,  one  of  the  undersigned  submitted  the  following 
resolution: 

Whereas  doubts  appear  to  exist  as  to  the  power  conferred  on  this  com- 
mittee by  the  resolnlion  of  the  House  of  Representatives ;  and,  as  it  is  im- 
portant that  a  distinct  expression  of  opinion  should  be  given  on  the  sub- 
ject, for  the  information  of  the  House  under  whose  authority  we  act,  and 
the  people  of  the  United  States: 

Be  it  resolved.  That  it  is  thc'deliberate  opinion  of  this  committee,  that  the 
authority  conferred  on  them  by  the  resolution  aforesaid,  is  limited  in  its 
character;  that  it  is  confined  to  the  investigation  of  the  late  defalcations, 
and  to  the  actings  and  doings  of  the  officers  of  the  Government  therein 
contained,  against  whom  any  charge  is  made,  or  suspicion  of  misconduct 
rests:  but,  that  they  are  not  authorized,  by  vh'tue  of  the  said  resolution,  lo 
call  upon  all  or  any  of  the  officers  aforesaid,  to  exhibit  their  books,  papers, 
accounts,  and  correspondence,  unless  some  foundation  is  laid  for  the  inquiry 
by  a  distinct  charge,  general  rumor,  or  the  suggestion  of  some  member  of 
the  connnittee,  upon  his  responsibility,  that  there  is  cause  to  believe  there 
is  misconduct  in  tlie  management  of  the  office ;  that  any  other  practice 
would  be  dangerous  to  the  rights  of  individuals,  arbitrary  in  its  character, 
and  in  dnect  conflict  with  the  genius  and  jjrinciples  of  our  republican 
Government.  Tiie  committee,  so  far  from  considering  such  a  power  was 
ever  intended  to  be  conferred  on  them,  are  of  opinion  that  the  exercise 
of  such  an  unlimited  anthorily  by  the  House  of  Representatives  alone 
would  be  a  violation  of  the  constitution,  and  the  common  principles  of 
justice. 

Which  was  rejected. 

At  a  subse(|uont  meeting  of  the  committee,  when  the  reading  of  the 
journal  was  in  progress,  the  mover  of  the  resolution  proposed  to  amend  it, 
by  striking  out  the  last  sentence  and  substituting  the  following: 

"The  committee,  so  far  from  considering  any  other  power  was  intended 
to  be  conferred,  are  of  opinion  that  the  delegation,  by  the  House  nf  Iiej>- 
resentatives  alone,  of  an  tinlindted  authority  to  call  on  all  officers,  witli- 
cut  restriction,  would  be  a  violation  of  the  spirit  of  the  constitution  and 
the  principles  of  common  justice." 

It  is  evident  the  object  of  the  mover  was  not  to  change  the  nature  of 


274  Rep.  No.  313. 

the  proposition,  but  to  express  in  more  distinct  language  tbe  idea  intended 
to  be  conveyed.  This  reasonable  recjuest  was  inexorably  refused,  and 
the  proposition  itself  not  allowed  to  be  inserted  on  the  journal.  It  is  sub- 
mitted, without  furtlier  commentary,  to  the  cahii  judgment  of  the  House, 
and  to  the  intelligence  of  the  people — the  latter  "  being  seldom  wrong 
in  their  opinions,  in  their  sentiments  never." 

By  the  rejection  of  that  resolution,  and  the  course  pursued  by  the  n-a- 
jority  of  the  committee,  it  was  manifest,  to  a  common  o!)servcr,  the  case 
of  Swartwout  and  Price  was  to  be  partially,  at  least,  abandoned,  and  a 
new  field  of  discovery  opened  and  entered  upon.  The  undersigned,  fully 
impressed  with  this  idea,  deemed  it  a  duty  they  owed  to  the  lionso  and 
the  country  to  have  a  distinct  expression  of  opinion  by  the  committee  on 
the  subject  of  the  defalcations  of  Swartwout  and  Price,  constituting,  as 
the  undersigned  supposed,  the  principal  object  of  the  House  in  raising  the 
committee. 

For  this  purpose  one  of  the  undersigned  submitted  the  following  reso- 
Uuion : 

Whereas,  under  the  resolutions  of  the  House  of  Representatives,  one  of 
the  great  objects  was  the  investigation  into  the  causes  of  the  defalcations 
of  Swartwout  and  Price  ;  and  as  the  visit  of  the  committee  to  New  York 
was  to  attain  that  object,  (the  persons  and  papers  being  there  to  enable 
them  to  make  the  necessary  examination  into  the  said  canscs;)  and  as  the 
public  mind  has  been  greatly  excited  on  the  subject,  and  looks  to  this 
committee  lor  a  thorough  investigation  into  the  actings  and  doings  of  the 
persons  above  mentioned  : 

Be  it  resolved,  That  this  committee  will  proceed,  with  all  despatch,  to 
investigate  the  case  of  Swartwout,  in  which  they  have  made  considerable 
progress;  and,  wlien  that  is  complete  and  ended,  they  will  take  up  the 
case  of  Price  and  give  that  a  thorough  investigation. 

Which  resolution  was  laid  on  the  table. 

The  call,  under  the  resolution  before  alluded  to,  was  made  on  Mr. 
Hoyt,  the  present  collector,  for  papers  and  documents  in  relation  to  his 
official  conduct.  He  responded  in  a  written  communication,  and,  among 
other  matters,  asked  if  the  committee  considered  him  as  a  defaulter,  and 
embraced  in  the  resolution  of  the  House  of  Representatives.  The  repli- 
cation was  by  a  resolution  in  the  following  words: 

Resolved,  That,  in  response  to  the  letter  of  Mr.  Hoyt,  of  tlie  28th  in- 
stant, the  chairman  be  histructed  to  call  upon  him  again  to  furnish  this 
committee  with  all  letters  not  heretofore  furnished  from  the  several  offi- 
cers of  the  Treasury  Department  to  the  late  and  present  collector  at  New 
York,  and  from  said  collectors  to  said  ofricersof  the  Treasury  Department, 
since  the  1st  day  of  January,  18:37,  up  to  the  lllhdiiynfJanunrij,  1839; 
and  also  with  all  orders  and  instrucliuns  from  said  oliicers  to  said  collect- 
ors, and  the  answers  of  said  collectors  thereto,  if  any,  not  heretofore  fur- 
nished, since  the  1st  day  of  January,  1837,  up  to  the  17th  day  of  January,. 
1839. 

*^nd  he  it  further  resolved.  That  this  committee  cannot  recognise  any 
authority  or  right  whatever  in  any  collector,  receiver,  or  disburser  of  the 
public  money,  to  call  upon"  the  committee,"  or  "any  of  its  members,"  to 
prefer  or  to  disavow  a  charge  of  his  "  being  a  defaulter,"  before  such  olfi- 
c«r  sends  '•  the  correspondence"  of  "  his  office,"  when  required,  under  the 


Rep.  No.  313.  275 

authority  of  the  House  of  Representatives,  "  to  send  for  persons  and  pa- 
pers," to  enable  its  committee  "  to  inquire  into,  and  make  report  of,  any 
defiilcations  among  collectors,  receivers,  and  disbursers  of  the  public 
monry,  which  njny  now  exist."  Nor  ctui  this  conunittee,  or  ''any  of  its 
members,"  report  whether  Mr.  lloyt /.v  o?" /.y  not  7zo?i?  a  defaulter,  until, 
by  examination  of  the  "persons  and  pa])ers"  for  which  it  has  sent  and 
will  send,  it  shall  discover  "who  are  the  defaulters;  the  amount  of.defal- 
cations;  the  length  of  time  they  have  existed;  and  the  causes  which  led 
to  them."  And  wlien  the  committee  shall  have  found  the  facts  embraced 
by  these  inquiries,  or  closed  it.s  investigation,  it  will  make  report  thereof 
to  the  House  of  RL-presentatives. 

By  this  resoUuion,  the  House  will  perceive  the  o})inion  entertained  by 
the  luajority  of  tlic  romrnittee  as  to  the  extent  of  their  power,  and  the 
mode  and  mamier  of  carrying  it  into  execution. 

The  doctrine  here  avowed  is,  that  an  ofiicer  of  Government,  against 
whom  no  charge  is  made  of  defalcation,  and  no  suspicion  expressed,  is 
called  upon  to  exhibit  the  papers  of  his  office,  not  in  compliance  with  the 
requisition  of  existing  laws,  but  the  ipse  dixit  of  a  committee,  prolessing 
to  act  under  the  order  of  the  House  of  Representatives  alone,  and  who 
say  to  him  ''  tliey  cainiot  report  whether  he  is  or  is  not  now  a  defaultery 
until,  by  examination  of  the  "  persons  and  papers"  for  which  it  has  sent, 
aiKJ  will  send,  it  shall  discover  who  are  the  defauUers. 

If  the  political  doctrine  contained  in  the  resolution  is  the  doctrine  of  the 
House  of  R(;presentatives,  it  is  imj)ortant  it  should  be  known  to  the  peo- 
ple. If  it  be  WMOhg,  they  will  put  their  mark  of  disapprobation  on  it; 
if  it  be  ri^dit,  they  will  give  it  the  sanction  of  their  opinion.  But,  until  they 
do  give  it  that  sanction,  the  undersigned  will  consider  the  doctrine  at  va- 
riance witii  every  principle  of  liberty  and  individual  right. 

Mr.  Hoyt  complied  with  the  resolution,  and  furnished  the  papers;  but 
demandetl  of  the  committee,  as  an  act  of  justice  and  matter  of  right,  that 
they  would  l^o  into  a  thorough  investigation  of  his  official  conduct,  prior 
to  their  departure  IVoni  New  York.  The  House  will  see  hereafter  what 
attention  was  paid  to  this  reasonable  request.  During  tlie  investigation, 
a  practice  was  pursued  in  the  examination  of  two,  and  sometimes  a  greater 
number  of  witnesses,  at  one  and  the  same  time,  embarrassing  to  the  com- 
mitiee,  and  calculated  to  produce  great  confusion  ;  also,  a  practice  of  al- 
lowing interrogatories  to  be  given  to  witnesses,  with  the  privilege  of 
answering  them  at  their  Ijisure,  and  out  of  the  committee-room.  The 
injurious  etl'ect  of  the  latter  practice  v^'-as  strongly  exemplified  by  permis- 
sion given,  under  resolution,  to  Uavid  S.  Lyon,  (who  was  afierw;iids  pro- 
ved to  be  a  dismissed  officer  of  the  customs,  and  stood  in  the  relation  of  a 
public  prosecutor  of  Jesse  Hoyt,  the  collector,)  to  take  the  question  or 
questions  home  with  him,  to  be  answered  next  morning. 

The  resolution  is  in  these  words: 

Moved  that  David  S.  J^yon,  a  witness  duly  sworn,  and  now  in  attend- 
ance, and  wh.o  states  that  he  is  in  ill  health,  and  unable  longer  to  attend 
thecommilte.!  this  evening,  be  permitted  to  take  away  with  him  the  first 
interrogatory  piopoundi.'d  by  Mr.  Wise  ;  and  that  he  be  allowed  to  draw 
up  his  answer  thereto  in  writing,  and  bring  the  same  to  the  committee,  for 
their  consideration,  at  the  meeting  to-morrow  morning. 

These  practices,  so  novel  and  unprecedented,  in  the  opinion  of  the  un- 
dersigned, and  so  likely  injuriously  to  allect  the  rights  of  all  persons  im- 


S76  Rep.  No.  313. 

plicated  in  tlie  iiivestigalion,  it  was  deemed  necessary  to  check,  if  possi- 
ble, by  a  direct  vote  of  the  conmiiltee.  One  of  the  undersigned  moved 
the  following  resohitions: 

Whereas  the  practice  adopted  by  the  committee,  of  examining  two  wit- 
nes'^es  at  the  same  time,  is  calcniated  to  defeat  the  object  of  this  investi- 
gation and  the  just  expectations  of  the  country,  as  well  as  to  produce  great 
embarrassment  and  inconvenience  to  the  members,  and  particularly  when, 
tmdcr  the  rule  of  examination,  one  member  is  compelled  to  examine  two 
witnesses  at  the  same  time :  and  whereas  the  injurious  effjct  of  this  prac- 
tice is  strongly  exemplified  by  the  examiiKition  at  the  same  time,  and  in 
the  presence  of  each  other,  of  two  witnesses,  to  wit,  Henry  Ogden  and 
.losliua  Phillips,  cashier  arid  assistant  cashier,  attaclied  to  the  custom- 
house, and  called  upon  to  testify  to  the  actings  and  doings  of  the  cashier 
department  :  be  it,  therefore. 

Resolved,  That,  hereafter,  one  witness  alone  shall  be  admitted  into  the 
committee-room,  wliose  examination  shall  be  complete  and  ended  before 
the  introduction  of  another. 

The  other  resolution  was  in  the  words  following: 

Whereas  the  practice  of  permitting  witnesses  to  prepare  their  answers 
to  interrogatories  out  of  the  committee-room,  and  not  in  the  presence  of 
ttie  committee,  U|)on  their  suggestion  of  ill  health,  real  or  affected,  is  dan- 
gerous in  its  character,  and  injurious  to  the  rights  of  those  implicated,  as 
the  coTid'ict  and  manner  o{  witnessos  in  giving  their  testimony  are  almost 
as  important  as  the  matter;  and  as  the  intention  of  the  House  of  Repre- 
sentatives, from  whom  we  derive  our  power,  was  to  have  a  fair,  honest, 
and  impartial  investigation: 

Be  it  resolved.  That  all  and  every  witness,  in  the  course  of  tliis  inves- 
tigation, shall  be  sworn  and  examined  in  the  committee-room,  and  in  the 
presence  of  the  committee. 

The  first  was  rejected,  a  substitute  being  offered  and  adopted,  as  will 
be  seen  by  reference  to  the  journal — the  latter  laid  upon  the  table.  These 
acts  need  no  further  observation.  We  give  the  text :  the  commentary 
can  be  applied  by  others. 

While  on  this  branch  of  the  subject,  there  was  another  practice  adopted 
by  the  committee,  which,  in  the  opinion  of  the  undersigned,  afl'ected  the 
private  rights  of  individuals :  inquiries,  not  as  to  defalcations,  but  the  dis- 
position by  oflicers  of  the  Goverinncnt  of  their  own  money  for  party  or 
political  purposes;  as  will  be  seen  l)y  a  question  to,  and  answer  of,  De 
Pr>/ster,  also  a  dismissed  officer  of  the  customs. 

Qui'stion  3.  While  you  were  connected  with  the  custom-house,  do  you 
know  whether  or  not  the  officers  of  the  customs  were  called  upon  to  pay 
any  part  of  their  salaries,  or  any  assessment  or  lax  thereon,  for  party  or 
political  purposes  ?  If  yea,  state  whether  you  have  ever,  and  when  you 
have  made  any  such  payment ;  and  state  the  motive  upon  which  such 
payments  were  made. 

%,^nsw('r.  The  weighers  were  called  on  to  pay  fifteen  dollars  each  for 
the  support  of  the  election;  and  when  I  declined,  Mr.  Vandcrpoel,  the 
deputy  surveyor,  observed,  that  I  ought  to  consider  whether  my  Si, 500 
per  annum  was  not  worth  paying  fifteen  dollars  for.  Under  the  impres- 
sion that  it  was  the  price  for  iTiy  situation,  I  paid  it.  The  above  occurred 
during  the  last  spring  election  for  charter  officers.     During  my  holding 


Kep.  No.  313.  277 

office,  for  about  five  years,  I  was  occasionally  called  on,  but  always  de- 
clined until  within  the  last  two  years. 

In  the  pursuit  of  this  object  an  occurrence  took  place  in  the  committee- 
room,  which  was  deemed  of  sutlicient  importance  to  be  spread  upon  the 
journal.     The  statement  is  in  these  words  : 

Resolved,  That  the  following  facts  be  entered  on  the  journal : 
Mr.  Wise  propounded  to  the  witness,  */2bruham  B.  Vandcrpocl,  the 
ibllowiug  question,  to  wit : 

Queslioii  2.  Do  you  know  whether  the  olHcers  of  the  custom-hoase 
liave  ever  been  called  on  to  contribute  sums  of  money  to  party  and  polit- 
ical objects;  what  olficers  have  been  so  called  on;  by  whonj;  for  what 
amount,  with  or  without  regard  to  their  salaries  of  oftice;  when  did  tiu-y 
contribute;  if  they  refused,  was  any  intimation  given  that  their  refusal 
might  occasion  their  removal ;  what  amount  has  been  so  contributed  or 
collected,  and  for  the  support  of  what  party,  at  any  one  election  ? 

The  witness  took  the  interrogatory,  without  objection  to  propoimding 
the  same,  and  proceeded  to  write  his  answer  thereto  on  the  paper  attached 
to  the  question;  and  had  written  the  following,  to  Vv'it: 

"  I  have  known  oflicers  attached  to  the  custom-house  to  have  been 
called  on  for" — when  Mr.  Owens,  member  of  the  committee,  interposed, 
and  informed  the  witness  that  he  was  not  bound  to  answer  any  interrog- 
atory relating  to  his  private  affairs:  and,  thereupon,  Mr.  Foster,  ancither 
member  of  the  committee,  objected  to  propounding  tlie  interrogatory. 
The  witness  here  commenced  to  tear  otf  what  he  had  written,  betbre  ob- 
jection was  made  to  the  interrogatory.  Mr.  Wise  prevented  him  from 
doing  so,  by  forbidding  the  act.  Mr.  Foster  insisted  that  the  witness  had 
the  right  to  tear  olt'  what  he  had  written,  and  tluit  it  was  not  his  answer 
until  i'  was.  complete  and  lianded  in;  and  he  asked  the  witness  whether 
it  was  his  answer,  and  he  replied  "  it  was  not;"  and  the  committee  hav- 
ing decided  that  the  interrogatory  should  be  prO|)ounded,the  said  question 
by  Mr.  Wise  was  again  handed  to  the  witness,  and  he  returne<l  the  fol- 
lowing:  "I  decline  to  answer  the  2d  question."  The  witness  was  then. 
p<?rmitted  to  retire. 

If  the  information  given  to  the  witness  of  his  rights  stood  in  need  of 
justification  or  precedent,  it  is  contained  in  the  following  statement  of 
facts  which  liad  previously  occurred  in  the  committee-room: 

Mr.  Oweii.'i  propounded  to  Mr.  Joseph  the  fiftii  question. 

The  witness  wrote  his  answer  in  the  following  words,  to  wit: 

"He  owed  us  a  very  large  sum  of  money  on  account  of  these  stock 
operations,  as  the  revulsion  of  1837  had  occasi»>ned  a  very  great  loss  oil 
the  stocks  we  had,  and  which  were  sold  after  our  fiiilure  by  the  parlies 
who  had  them  under  hypothecation :"  and  handed  the  tbregoiug  answer 
to  Mr.  Owens,  who,  after  reading  it,  told  the  witness  he  had  not  answered 
the  question  fully,  not  having  stated  the  amount  of  Swartwout's  indebt- 
edness. Whereupon,  tliC  witness  replied,  "that  he  would  not  wish  to 
state  that,  as  he  had  not  bis  counsel  here,  and  the  amount  was  yet  to  be 
settled  between  him  and  Mr.  Swartwout." 

Mr.  Wise  then  observed,  in  the  hearing  of  the  witness,  that,  as  a  judge 


278  Rep.  No.  313. 

in  this  case,  lie  felt  it  to  be  his  duty  to  say  to  the  witness  that  he  had  a 
riirht  to  dechiie  answering  a  question  relating  to  his  priv;ite  affairs.  The 
witness,  after  some  conversation  between  Mr.  Owens,  Mr.  Foster,  and 
Mr.  Wise,  took  back  his  answer,  and  added  the  following  words: 

'•  As  to  the  amoinit,  I  do  not  think  it  necessary  to  state  it,"as  it  is  a  mat- 
ter of  account  between  Mr.  Swarlwout  and  oiu'selves,  and  has  to  be  ad- 
justed when  we  come  to  a  settlement  with  him." 

The  subject  is  calculated  to  attract  the  public  eye,  and  produ:e  reflec- 
tion. It  atibrds  a  reinarkable  instance  of  the  course  pnrsued  by  the  ma- 
jority of  the  committee  ;  the  respect  observed  to  the  rights  and  j)rivikges 
of  witnesses  under  examination  before  a  committee  regulated  by  no  known 
iaws,  but  governed  by  the  dictates  of  an  arbitrary  discretion. 

In  the  opinion  of  the  itadersigned,  the  cpiestion  propounded  the  witness 
had  relation  to  his  private  affairs.  The  Vv'itness,  V^^anderpoel,  answered  it 
in  part;  but  as  soon  as  he  was  informed  of  his  rights  and  obligation's  as  a 
witness,  he  refused  to  complete  it,  and  said  it  was  not  his  answer,  and 
wished  to  destroy  it;  it  was,  nevertheless,  retained,  as  appears  by  the 
statements  above  referred  to.  The  whole  proceeding  carries  along  with 
it  its  own  commentary,  and,  without  further  observation,  it  is  submitted  to 
the  House  and  the  country. 

Whether  a  committee  of  this  House,  appointed  under  its  extraordinary 
and  discretionary  parliamentary  power,  undefined  uud  undefinab/e,  is 
authorized  to  go  into  the  investigation  of  the  private  affairs  of  officers 
of  the  General  Government  in  relation  to  their  actings  and  doings  as  citi- 
zens of  the  State  in  which  they  reside,  and  having  reference  to  their 
domestic  elections,  (the  que.s/ion  is  general,  nnd  l3e  Peyster  refers  to 
the  charter  elections.)  is  a  subject  of  grave  consideration.  It  assumes- an 
attitude  that  places  it  beyond  the  reach  of  mere  party  movements.  It 
strikes  at  cardinal  principles  dear  to  the  American  people.  It  is  the  as- 
sinnption  of  a  power  not  warranted  by  the  limited  constitution  under 
which  the  General  Government  lives,  breathes,  and  has  its  being.  The 
doctrine  of  State  rights  is  a  mere  mockery  to  the  undcrstandmg,  if  this 
principle  is  warranted  and  acted  upon.  Admit  it,  and  the  accei)tance  of 
ofiice  under  the  General  Government  ipso  facto  denationalizes  the  indi- 
vidual as  a  citizen  of  New  York,  The  right  of  inquiry  involves  the  right 
to  pass  laws.  If  Congress  can  say  the  officer  shall  not  have  the  right  to 
use  his  money  for  one  pm-pose,  they  may  say  he  shall  not  use  it  for 
another.  They  may  say  he  shall  not  attend  the  polls;  and,  putting  the 
cap-stone  to  this  politica}  pillar,  they  may  say  he  shall  not  vote  at  any 
election.  Sanction  this  principle,  and  you  have  a  consolidated  govern- 
ment in  all  its  forms. 

This  doctrine,  like  others  akin  to  it,  m.iy  be  maintained  by  specious  ar- 
gument and  ingenuity  ;  but  the  people  of  thiscoimtry,  as  they  have  hereto- 
fore done  in  all  proceedings  affecting  their  lives,  tlieir  property,  or  politic^il 
rights,  will  not  be  guided  by  the  refinements  of  learning,  but  ciinsult  their 
understanding,  and  be  governed  by  the  plain  dictates  of  common  sense. 
The  evidenc  on  the  su!)ject  of  money  spent  for  parly  purposes,  has  refer- 
ence to  the  time  of  Swartwout  as  collector.  The  general  conclusion  de- 
rived from  it  is,  that  the  practice  is  not  confitied  to  one  party,  but  pervades 
all  parlies  in  New  York.  That  it  is  the  general,  if  not  universal  practice, 
the  best  evidence  is  afforded  by  the  witness  David  S.  Lvon,  who,  accord- 
ing to  his  own  admission,  belonged  to  both  parlies,  and  is  well  qualified 
to  testify  to  the  fact. 


Bep.  No.  313.  279 

That  the  payment  was  not  compulsory,  bnt  voluntary,  is  evident  frona 
the  answer  of  De  Peyster,  who  says,  tor  three  years  out  of  five  he  con- 
tributed nothing.  And  there  is  no  evidence  he  was  proscribed  by  Swart- 
wout. 

With  a  view  of  putiing  a  sl,op  to  such  inquiries,  and  to  enable  witnesses, 
particularly  ignorant  men,  to  know  their  rights  and  obligations,  one  of 
the  undersigned  oflered  the  following  rrsoliition: 

Resolved,  That  every  witness,  upon  being  called  to  testify,  shall  be  in- 
formed by  the  chairman  that  he  is  not  obliged  to  answer  any  question 
upon  his  private  afi'aiis,  or  the  private  atiairs  of  others. 
Which  was  rejected. 

The  examination  of  this  witness,  David  S.  Lyon,  an  officer  who  had 
been  discharged  by  Mr.  Hoyt  from  the  custom-house,  had  not  progressed 
far  before  it  was  evident  his  intention  was  to  criminate  the  collector.  The 
undersigned  considering  the  plainest  principles  of  justice  were  violated  by 
allowing  the  character  and  reputation  of  an  important  officer  of  the  Gov- 
ernment to  be  attacked,  as  it  were,  in  the  dark,  without  his  knowledge, 
and  without  the  means  of  ascertaining  the  charges  made  against  him,  one 
of  them  moved  the  following  resolution  : 

Resolved,  That  Mr.  Hoyt,  the  collector,  be  furnished  by  the  clerk  with 
copies  of  all  the  interrogatories  and  answers  of  David  S.  Lyon,  a  witness 
examined  in  this  investigation,  as  far  as  he  has  made  answer  to  them,  and 
having  relation  to  the  conduct  of  said  Jesse  Hoyt. 
Which  was  adopted. 

Bnt  this  being  considered  too  i^n^nt  an  indulgence,  a  reconsideration 
was  n;joved  and  carried,  and  an  amendment  ofiered,  as  follows : 

Resolved,  That  Jesse  Hoyt,  the  collector  of  New  York,  he  forthwith 
sumjnoned  as  a  witness ;  and  that,  before  he  be  examined,  the  interroga- 
tories submitted  to  David  S.  Lyon,  a  witness  examined  this  morning,  and 
his  answers  thereto,  be  read  to  him,  if  desired,  or  he  be  allowed  to  read 
them;  and  that  lio  ha.ve  liberty  to  attend  the  committee  during  the  exami- 
nation of  any  witness  wh.o  may  be  called  upon  to  testify  concerning  his 
official  conduct. 

The  amendment  was  adopted ;  and  the  resolution,  as  amended,  was 
voted  for  by  the  undersigned  as  a  dernier  resort,  or  the  same  would  have 
been  lost.  They  beg  leave  to  call  the  attention  of  the  House  and  the 
country  to  this  amendment — to  this  boon  given  to  Mr.  Hoyt  in  his  posi- 
tion of  collector,  surrounded  as  he  was  by  open  and  secret  enemies  in  the 
shnpe  of  officers  discharged  by  him,  under  an  imperious  sense  of  duty  to 
the  public  and  himsetf,  from  their  places  in  the  custom-house,  and  foreign 
importing  merchants,  who  fancied  they  had  been  injured  by  him  in  the 
discharge  of  his  duty  as  collector.  They  beg  the  House  and  the  coiuitry 
to  look  at  it  in  its  two-fold  asj^ect — as  a  siibpoena,  and  as  an  indulgence 
given  to  an  American  citizen  who  had  his  reputation,  dearer  to  an  honor- 
able man  than  life  itself,  at  stake,  and  say  "if  these  things  can  pass  us 
like  summer  clouds  and  not  attract  our  special  wonder." 

Mr.  Hoyt  was  summoned  to  appear  forthwith,  not  as  an  ordinary 
witness,  but  in  the  double  character  of  a  witness  and  parly  accused.  For 
rapidity  of  movement  and  quickness  of  execution,  it  was  more  like  a 
ivarrant  than  a  subpoena.  It  was  no  sooner  served  thaji  Mr.  Hoyt  was 
in  the  committee-room.  Lyon's  testimony,  as  far  as  it  had  gone,  was 
read  to  him  ;  and  he  was  instantly  placed  in  the  crucible  of  one  of  the 


280  Rep.  No.  313. 

members  of  the  committee,  who  examined  him  for  many  consecutive 
ho  11  IS. 

We  know  not  how  others  felt  at  the  scene  passing  around  them ;  but, 
for  ourselves,  it  was  a  subject  of  deep  humiliation,  and  has  left  an  im- 
pression on  the  memory  not  easily  erased.  In  the  progress  of  the  inves- 
tigation into  the  official  conduct  of  Mr.  Hoyt,  intimations  were  thrown 
out  occasionally,  in  the  committee-room,  that  the  time  had  nearly  arrived 
for  the  departure  of  the  committee  from  New  York.  These  intimations 
were  warnirjgs  not  to  be  neglected.  The  evidence  against  Mr.  Hoyt  was 
in  manuscript,  though  not  printed  ;  it  would,  as  a  matter  of  course,  appear 
on  tlie  jolu'nal.  All  that  he  had  to  oppose  to  it  was  his  own  testimony, 
and  that  of  one  or  two  other  witnesses.  Justice  demanded  that  he  should 
have  a  full  and  fair  opportunity  to  introduce  rebutting  evidence ;  pro- 
priety, and  the  peculiarity  of  his  position,  required  this  opportunity  should 
be  alforded  liim  in  tlie  city  of  New  York.  One  of  the  undersigned,, there- 
fore, moved  the  following  resolution: 

By  reference  lo  the  testimony  of  David  S.  Lyon,  a  witness  examined 
in  the  course  of  this  investigation,  it  appears  charges  of  a  serious  character 
are  brought  against  the  present  collector  of  New  York,  Jesse  Hoyt,  and 
intending  to  implicate  Benjamin  F.  Bntler,  the  district  attorney  of  New 
York  ;  and  as  justice  requires  the  said  Jesse  Hoyt  and  Benjamin  F.  But- 
ler'should  be  heard  fully  in  relation  to  the  said  charges,  to  enable  theni 
to  spread  upon  the  journal  of  this  committee  the  evidence  upon  which 
their  defence  may  be  founded,  so  that  as  the  journal  contains  the  poison, 
the  antidote  (if  the  testimony  furnishes  it)  also  should  appear  for  the 
instruction  of  the  House  and  the  information  of  the  people  of  America  : 

Be  it  resolved.  That  this  committee  will  not  adjonrn  its  sittings  in  the 
city  of  New  York,  where  the  parties  reside,  and  the  evidence  most  likely 
to  be  found,  until  the  said  Jesse  Hoyt  and  Benjamin  F.  Bntler  have  full 
and  ample  time  to  prepare  their  defence  (if  any  they  have)  to  the  charges 
against  them  as  officers  of  the  Government  of  the  United  States. 

It  was  moved  to  lay  the  resolution  on  tlie  table  until  the  examinatioa 
of  witnesses  was  completed;  and  it  was  so  laid  on  the  table. 

Mr.  Hoyt  himself,  under  circimistances  more  particularly  developed  in 
the  journal,  sent  a  written  communication  making  the  same  demand.  It 
was  neither  read  nor  received.  The  ground  \\\)o\\  which  the  rejection  of 
this  application  was  based,  was  the  refusal  of  Mr.  Hoyt  to  respond  to  a 
question  propounded  to  him  until  his  communication  was  acted  on.  On 
the  same  day,  at  half-past  four  o'clock,  P.  M.,  the  following  resolution 
was  proposed : 

Resolved,  That  this  committee  having  accomplished  its  principal  object, 
to  inspect  the  books  and  papers  in  the  custom-house,  in  coming  to  the  city 
of  New  York,  and  desiring  to  inspect  the  books  and  papers  in  the  Treas- 
ury Departm.ent  at  the  city  of  VVasbington,  during  the  short  period  of 
time  now  left  to  the  further  proseciuion  of  its  inquiries,  will  adjouni  this 
day  at  10  o'clock,  P.  M.,  to  meet  at  12  M.,on  Tuesday,  the  12th  instant,, 
at  the  room  of  the  Committee  on  Commerce,  in  the  Capitol ;  and  that  {\\q 
witnesses  henceforth  be  summoned  to  appear  at  that  place  till  further- 
ordered. 

It  was  moved  by  one  of  the  undersigned  to  amend  the  resolution  as 
follows : 


Rep.  No.  313.  28 1 

Whereas,  in  the  course  of  the  investigations  of  this  committee,  witnesses 
have  been  introdnced  and  sworn  whose  testimoiiy  has  tended  to  charge 
the  present  collector  of  the  port  of  New  York  with  offi  -ial  miseondnct: 
and  wliercas  the  said  collector  has  applied  to  this  ommitlee  for  permis- 
sion to  be  heard  in  relation  thereto,  and  to  go  into  a  full  investigation 
thereof,  by  witnesses  to  be  produced  by  him,  and  reqnesting  that  such  fnll 
investigatiyn  may  be  had  here,  (in  the  city  of  j>ie\v  York,)  where  he  al- 
leges that  the  witnesses  whom  he  wishes  to  introdnce  reside:  and  where- 
as it  is  due  to  the  fair  and  fnll  administration  cf  justice  that  the  said  col- 
lector should  have  a  full  opportunity  to  rebut  the  charges  thus  made  against 
him:  and  whorea.^  several  witnesses  are  now  under  examination  before 
this  committee,  the  testimony  of  whom  is  not  yet  closed:  and  whereas^ 
from  the  fact  that  several  witnesses  have  been  under  examination  at  the 
same  time,  the  testimony  of  several  of  whom  Is  not  now  before  the  com- 
mittee^either  in  manuscript  or  in  print,  (a  portion  of  the  manuscript  being 
m  the  hands  of  the  printer.)  the  committee  have  not  at  this  time  the 
means  of  ascertaining  the  effect  to  be  given  to  that  testimony,  or  the  na- 
ture thereof:  and  individual  members  of  the  committrje  are  consequently 
unable  (untii  a  betler  opportunity  shall  be  afforded  to  examine  said  tes- 
timony) to  determine  how  much  farther  the  examination  of  those  wit- 
nesses should  proceed,  or  what  othc'  witnesses  ought  to  be  examined  in 
this  case,  in  order  to  a  full  understanding  thereof:  and  wheraas  we  are 
satisfied  that  a  full  investigation  of  the  ftcts  connected  with  the  defalca- 
tions charged  can  be  better  examined  into  here  than  elsewhere  :  therefore 
.  Bes'jlned,  Tliat  this  conmiittee  will  not  fix  upon  a  time  for  closing  the 
testimony  in  New  York  unti]  the  testimony  is  at  an  end;  and  that  the 
fixing  the  time  for  adjourning  to  Washiuiiton,  by  a  res  )lution  passed  be- 
fore the  testimony  is  ended,  will  be  calculated  to  deprive  the.  said  collector 
of  the  right  {wliich  every  man  when  charged  has-)  of  showing  that  those 
charges  are  unfjunded.  and  of  protecting  his  character  from  aspersion; 
will  prevent  the  individuals  of  the  com.nittes  from  examining  and  cross- 
examining  such  witnesses  as  they  may  believe  ouirht  to  be  examined; 
will  set  a  precedent  entirely  new  and  arbitrary  in  the  administration  of 
justice,  dangerous  to  the  rights  and  privileges  of  persons  who  niay  be 
charged  with  misconduct ;  will  be  deciding  a  question,  the  propriety  of 
which  the  committee  cannot  possibly  know;  and  will  be  well  calculated 
to  destroy  in  the  public  mind  all  confidence  in  the  results  to  which  this 
committee  may  arrive. 

ResolDerl,  That  hereafter  the  time  which  the  committee  will  be  in  ses- 
sion, shall  be  from  ten  o'clock  A.  M.  till  half  past  tour  o'clock  P.  .M.,and 
from  seven  o'clock  P.  M.  till  half-past  ten  P.  M. 

The  amendment  was  rejected,  and  the  resolution  adopted. 

The  determination  therein  expressed  was  carried  into  eff.^ct;  and  the 
committee  was  adjourned  at  ten  o'clock  at  ni^ht,  while  one  of  the  under- 
signed was  in  the  act  of  examining  the  witness,  David  S.  Lyon,  and 
another  in  the  act  of  submitting  a  proposition  for  subpoenas  for  Hoyt's 
witnesses. 

In  consequence  of  these  proceedings  against  Mr.  Hoyt,  the  collector,, 
but  a  very. limited  examination  was  made  into  the  defalcations  of  Price, 
the  district  attorney;  few  witnesses  were  examined,  and  few  facts  of  any 
importance  were  elicited  notalready  known.  Tiie  undersigned,  however, 
regret  a  more  thorough  investigation  was  not  made ;  they  are  under  the 
19 


282  Rep.  No.  313. 

conviction,  from  the  general  complexion  of  the  testimony  during  the 
whole  investigation,  that  Price  acted  a  very  important  part  in  these  frauds 
and  peculations. 

On  the  return  of  the  committee  to  Washington,  they  resumed  their  ar- 
duous duties.  Many  witnesses  were  examined,  and  documents  referred 
to,  all  of  whicii  are.  incorporated  in  the  journal,  and  part  of  it  adverted  to 
in  this  report. 

The  subjects  of  inquiry  were  similar  to  those  in  New  York,  botii  as  to 
the  extent  and  causes  of  the  defalcations;  and  also  the  causes  why  the 
same  were  not  known  at  an  earlier  date  to  the  accounting  officers  at 
Washington.  In  pursuing  the  latter  inquiry,  it  was  necessary  to  go  into 
an  investigation  of  the  peculiar  duties  required  to  be  performed  under  ex- 
isting laws,  practice,  or  usage,  by  the  Secretary  of  the  Treasury,  the  First 
Auditor,  and  the  Comptroller.  The  undersigned  will  not  increase  the 
volume  of  this  report  by  including  in  it  all  the  evidence  on  this  subject  in 
detail,  but  beg  leave  to  refer  to  the  journal.  They  deem  it  proper^  how- 
ever, for  a  full  understanding  of  the  duties  belonging  exclusively  to  these 
dift'ere'it  officers  of  the  Government,  in  relation  to  the  auditing  and  settling 
of  accounts,  more  particularly  those  appertaining  to  the  customs,  to  call 
t'ne  attention  of  the  House  and  the  country  to  the  following  documents, 
and  the  questions  and  answers  of  witnesses  examined'iipon  die  occasion, 
and  in  reference  to  this  subject. 

The  evidence  of  Mr.  Yotmg,  chief  clerk  in  the  Treasury  Department. 

Question  3.  Will  you  state  how  the  Department  of  the  Secretary  of  the 
Treasury  is  organized,  legally  and  practically,  in  respect  to  settling  the  ac- 
counts of  collectors  and  receivers? 

Answer.  The  power  of  adjusting  and  settling  the  accounts  of  collectors 
and  receivers,  in  respect  to  the  revenue  from  duties  and  lands,  is  by  law 
vested  in  tlie  accounting  officers  of  the  Treasury.  Collectors'  accounts  are 
adjusted  by  the  First  Auditor,  subject  to  the  revision  of  the  First  Comp- 
troller; accounts  of  receivers,  by  the  Commissioner  of  the  General  Land 
Office,  also  subject  to  l)e  revised  by  the  First  Comptroller.  The  Secretary 
of  the  Treasury  has  no  power  as  to  the  settlement  and  adjustment  of 
these  accounts,  further  than  to  make  allowances  for  the  expenses  of  col- 
lection in  cases  where  there  is  no  express  legislation  fixing  allowance  for 
such  cxjicnses. 

That  of  Mr.  WoodbKry,  Secretary  of  the  Treasury,  to  the  following  : 

Question  11.  Am  I  to  understand  that  you  have  never  considered  it  to 
be  your  duty,  and  that  you  have  never  discharged  the  duty  of  superin- 
tending the  reports  of  the  First  Auditor  and  the  Comptroller;  and  that  you 
did  not  know,  and  had  no  means  of  knowing,  whether  their  reports  were 
correct,  or  whether  they  had  faithfully  done  their  duty  in  adjusting  and 
settling  accounts? — 

is  in  these  words  : 

Answer.  The  reports  of  the  First  Auditor  on  accounts  settled  are,  by 
law  and  usage,  made  to  the  First  Comptroller,  and  not  to  the  Secretary  of 
the  Treasury  ;  and  the  reports  of  the  First  Comj)troller  on  accounts  settled, 
when  the  balances  are  considered  suspicious  or  proper  for  suit,  are  wade 
■directly  to  the  Solicitor  of  the  Treasury,  and  formerly  to  the  law  agent. 


Rep.  No.  313.  -         283 

Neither  in  those  settleiiiejits  nor  those  reports  does  the  Secretary  of  the 
Treasury  interfere  ;  and  it  has  often  been  decided  by  the  Attorney  Gt-.ncral 
that  no  oilicer  of  the  Government  lias  a  right  to  control  or  reverse  tlie  de- 
cisions of  the  accounting  ollicers  in  making  those  settlements  and  reports. 

Extract  of  a  letter  dated  Office  of  the  ^ittorney  General  of  tlw  United 
States,  Octolyer  20th,  1823,  sii^ned  William  IVirt. 

"■  In  the  original  organization  of  the  Treasury  Department,  (vol.  2 
Laws  U.  S.,  p.  48,)  the  duties  of  the  officers  are  designated  specifically. 
There  was  one  Auditor  and  one  Comptroller.  The  duty  of  the  Auditor 
is  declared  to  be  to  receive  all  public  accounts,  and,  after  examination,  to 
certify  the  balance,  and  transmit  the  accoimts,  with  the  vouchers  and  cer- 
licate,  to  the  Comptroller  for  his  decision  thereon;  with  this  proviso,  that, 
if  any  person  be  dissatisfied  therewith,  he  may,  witiiinsix  months,  appeal 
to  the  Comptroller  against  such  settlement.  Here  the  rightof  appeal  stops;, 
'there  is  no  proviso  for  an  appeal  to  the  President.  With  .regard  to  the 
Comptroller,  it  directs  that  it  shall  be  his  duty  to  superintend  the  adjust- 
ment and  preservation  of  all  public  accounts,  to  examine  all  accounts  set- 
tled by  the  Auditor,  and  certify  the  balances  arising  thereon  to  the  Regis- 
ter ;  no  right  of  aj)peal  from  his  decision  to  the  President." 

Extract  of  a  letter,  dated  Attorney   GeneraVs  Office,  April  5th,  1832^ 

signed  R.  B.   Taney, 

"  None  of  the  acts  of  Congress  prescribing  the  mode  of  settling  ac- 
counts and  ascertaining  balances,  look  to  a  revision  of  the  accounts  by 
the  President,  except,  perhaps,  some  laws  passed  for  the  relief  of  particu- 
lar individuals,  in  which  the  power  is  expressly  given.  The  general  laws 
upon  that  subject  seem  to  regard  the  decision  of  the  Comptroller  as  final, 
and  require  the  Executive  branch  of  the  Government  lo  act  upon  it  ac- 
cordingly." 

The  reasons  why  the  defalcations  were  not  soonerdetectcd  by  the  First 
Auditor  and  the  Comptroller,  to  whom  tlic  duty  of  auditing  and  settling 
the  accounts  exclusively  belonged,  are  given  in  their  evidence  ;  and  the 
general  conclusion  derived  from  it  is,  that  it  arose  from  the  fraudulent 
manner  in  which  Swartwout  rendered  his  accounts,  as  fully  stated  and 
explained  by  the  evidence,  both  in  New  York  and  VVashington,  as  con- 
tained in  the  journal,  and  to  which  we  beg  leave  more  particularly  to 
refer. 

But  little  opportunity  was  afforded  to  go  into  the  consideration  of  iho 
conduct  of  land  receivers  and  other  officers  included  in  the  resolutions  of 
the  House.  The  only  evidence  on  this  subject  was  the  commnniration 
of  the  Secretary  of  the  Treasury,  already  publislied,  and  some  additional 
letters  from  said  officers  addressed  to  the  Department ;  no  part  of  which 
having  been  placed  on  the  journal  as  evidence  in  the  usual  fornj,  the  un- 
dersigned are  unable  to  come  to  any  definite  conclusion  upon  this  portion 
of  the  subject  of  investigation. 

During  the  whole  investigation,  and  after  a  careful  examination  of  the 
evidence  since  its  termination,  the  undcrsigndl  can  see  no  just  cause  to 
cast  censure  upon  the  head  of  the  Treasury  Department  for  any  want  of 
diligence  or  attention  in  the  performance  of  the  duties  of  his  high  and 
responsible  station.  This  untoward  and  unfortunate  atiair,  by  which  the 
country  has  sustained  so  much  loss,  could  not  have  been  prevented  or 


284  Eep.  No.  313. 

controlled  by  nny  efforts  of  his.  The  evidence  is  strong  and  coiivincing 
that  the  auditing  oiid  settling  these  accounts  and  detecting  defalca- 
tions do  not  appertau)  lo  his  Department,  or  constitute  any  of  the  duties 
imposed  upon  iiim ;  tliey  belong  to  separate  and  distinct  bureaus  over 
which  he  lias  no  control,  and  so  deleruiined  by  the  legal  advisers  of  the 
Government.  When  the  defalcations  were  made  known,  there  is  abun- 
dant testimony  furnislied  by  the  docilments  that  he  made  every  effort  and 
used  every  instrnn  ent  that  the  power  of  the  Department  over  which  he 
presides  enabled  him  to  use,  for  the  recovery  of  the  money;  and  that, 
since  the  occurrence,  lie  has  adopted  and  enforced  such  regulations  for  the 
safe-keeping  of  the  public  money,  as  his  limited  power  and  the  want  of 
legislative  action  have  enabled  him  to  exercise.  'J'he  duties  of  his  station  are 
not  only  various,  but  laborious  ;  they  require  talent,  patience,  and  indus- 
try :  these  lie  has  devoted  to  the  public  service  in  the  administration  of 
the  high  functions  devolved  upon  him  as  Secretary  of  tiie  TreasiHy.  It 
may  be  said  with  confidence  and  truth,  his  fidelity  to  his  trust  is  un- 
questioned and  unques-tionable — his  purity  known  and  acknowledged. 
As  a  public  man,  experience  must  have  taught  him,  in  high  and  violent 
party  times,  it  he  were  "as  puie  as  ice,  as  chaste  as  snow,  he  would 
not  escape  calumny." 

That  the  country  has  sustained  great  pecuniaiy  loss,  no  man  can  doubt; 
that  the  national  character  has  suffered  deep  humiliation  and  disgrace, 
no  man  can  hesitate  to  admit.  But  losses  like  these  are  incident  to  all 
Governments  ;  no  one  is  free  from  them.  The  annals  of  our  own  afl'ord 
numerous  instances  of  pecidation,  committed  at  every  [)eriod  of  its  short 
existence,  under  all  and  every  administration,  and  all  and  every  fiscal 
system  which  has  been  adoj)ted  and  carried,  into  practice — no  matter  who 
has  been  the  fiscal  agent — the  Government  has  sustained  loss;  it  must 
be  so  until  man  becomes  honest.  But,  from  our  very  misfortunes,  we 
may  derive  benefits;  these  incidents,  like  storms,  purify  the  stagnant  at- 
mosphere; they  may  check  for  a  moment,  but  cannot  stop  the  onward 
march  of  the  state  to  her  high  destinies.  The  lessons  of  experience  will 
not  be  forgotten,  and  remedi-es  must  and  will  be  applied  to  guard  and 
protect  the  public  purse. 

These  remedies  are,  in  the  opinion  of  the  undersigned — 

1st.  Persons  to  be  a))pointcd  under  an  act  of  Congress,  whose  duty  it 
shall  be,  periodically,  or  at  any  time,  under  the  direction  of  the  Treasury 
Department,  to  personally  inspect  the  books  and  papers  of  all  officers  in- 
trusted with  the  public  money.  „: 

2d.  To  have  all  officers  of  the  customs  who,  in  the  remotest  degree, 
may  be  connected  with  the  fiscal  concerns,  or  intrusted  with  the  public 
money,  derive  their  apjjointment,  not  from  the  collector,  but  fioin  the 
nomination  of  the  President  and  confirmation  by  the  Senate,  or  directly 
from  the  head  of  the  Treasury  Department. 

3d.  That  all  collectors,  receivers,  and  disbursers  of  the  public  money 
be  required  to  make  their  returns  to  the  Treasury  Department  under  oath. 

4th.  Making  the  embezzlement,  by  any  officer,  of  the  public  money,  a 
high  peiKil  offence. 

5th.  ^htking  it  a  penal  offence  in  any  officer  conniving  at,  knowing,  or 
being  privy  to,  any  embezzlement  of  the  public  money,  and  not  giving  im- 
mediate notice  to  the  Tnasury  Department. 

No  calm  and  dispassionate  man  can  read  the  evidence  taken  by  the 
"ommittee  in  the  progress  of  this  investigation,  but  will  come  to  the  con- 


Rep.  No.  313.  285 

elusion  that  the  cashier  and  assistant  cashier  and  the  deputies  of  the  cus- 
tom-house being  indebted  to  Swartwout  lor  their  offices, and  subject  to  be 
removed  by  him,  was  one  of  the  great  causes  of  the  peculation,  and  of 
its  concealment. 

That  the  labors  of  the  committee  in  this  investigation  will  produce 
some  good,  is  probable  ;  that  it  would  have  produced  greater,  and  given 
more  satisfaction  to  the  public  mind  had  it  been  conducted  on  more  en- 
larged principles,  we  have  no  doubt.  Be  that  how  it  may,  we  have  en- 
deavored to  discharge  our  duty  to  the  House  and  to  the  coimtry. 

There  is  one  occurrence,  however,  that  took  place  in  the  investigation 
at  Washington,  of  a  remarkable  character,  and  deserves  notice.  Mr, 
Woodbury,  the  Secretary  of  the  Treasury,  was  called,  and  sworn  as  a 
witness.     The  first  question  propounded  to  him  was  in  these  words  : 

Question  1.  Have  you  seen,  iead,  or  heard  read  or  described,  or  been 
informed  of  aiiy  portion  of  the  evidence  taken  before  this  committee  ? 

JJnswer.  I  have  not  seen,  read,  or  heard  read  any  of  it;  nor  has  it  been 
described  to  me;  nor  have  I  been  informed  in  respect  to  it,  except  what 
gentlemen  in  conversation  may  have  suggested  was  probably  the  cliar- 
acter  of  some  of  the  evidence  ;  but,  whether  correctly  or  not,  I  have  no 
means  of  judging. 

If  it  be  right  that  a  man  on  his  tricil  should  be  informed  of  the  charges 
made  against  him,  why  ask  the  question  ?  We  know  not  what  was  the 
object  in  propounding  it.     Every  man  will  draw  his  own  conclusions. 

We  deemed  it  at  the  time  a  most  extraordinary  question  to  be  submitted 
to  IVfr.  Woodbury  in  liis  then  peculiar  position.  We  believe  it  unprece- 
dented in  the  annals  of  criminal  jurisprudence. 

We  take  this  opportunity  frankly  to  avow  to  the  House  and  the  peo- 
ple, had  there  been  any  evidence  taken  in  New  York  tending  to  implicate 
the  honor  and  reputation  of  Mr.  Woodbury,  or  any  other  American  cit- 
izen, and  it  had  not  been  made  known  to  him  by  the  committee,  we 
should,  under  the  most  solemn  conviction  of  duty,  of  what  is  due  to  pri- 
vate honor  and  public  virtue,  and  that  sense  of  justice,  to  violate  which 
would  be  to  betray  the  best  interests  of  the  people,  have  communicated 
the  fact.     No  human  power  could  have  induced  us  to  remain  silent. 

There  is  a  zeal  in  politics  as  strong,  though  not  so  holy  as  in  religion, 
that  excites  the  passions,  and  leads  us  into  error.  It  reverses  the  precept, 
and  makes  us  do  unto  others  what  it  will  not  permit  them  to  do  unto  us. 
Fair  and  honorable  conflict  of  parties  invigorates  the  body  politic,  and 
benefits  the  state  ;  but.  when  party  spirit  assumes  the  character  of  perse- 
ciuion,  it  is  a  demon  that  perverts  the  understanding  and  corrupts  the 
heart. 

The  respect  we  have  to  the  House,  and  our  devotion  to  the  people  and 
the  principles  of  liberty,  have  imposed  on  us  the  duty  of  giving  this  sim- 
ple narrative,  not  only  of  our  acts,  but  the  manner  and  ibrm  in  which 
they  have  been  executed.  In  politics,  it  has  been  said,  names  mean  things. 
It  may  be  said  with  equal  truth,  in  all  political  movements,  forms  mean 
substance.  The  people  have  a  right  to  know  not  only  what  is  done,  but 
how  it  is  done.  The  greatest  guaranty  of  freedom  is  publicity. 
All  which  is  respectfully  submitted  : 

GEO,  W.  OWENS, 
HENRY  A.  FOSTER, 
DAVID  D.  WAGENER. 


'V 


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